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EU proposes formal steps to reduce tariffs in trade with the US

The European Commission has presented two legal proposals paving the way for the implementation of the EU-US Joint Statement. The proposals aim to ensure that the U.S. tariff exemption for the EU automotive sector is applied retroactively from August 1.

EU proposes formal steps to reduce tariffs in trade with the US

In its statement, the Commission noted that these steps will enhance stability and predictability in EU-US trade and investment relations, to the benefit of businesses, workers, and citizens on both sides of the Atlantic. The proposals include the removal of tariffs on U.S. industrial goods, granting preferential market access for certain U.S. seafood and agricultural products, and the extension of duty-free treatment for some items, including processed lobster.

Under the EU-US Joint Statement, the U.S. tariff cap on EU cars and parts will be set at 15%, instead of the previous 27.5%, starting from August 1, 2025. This is expected to save car manufacturers more than EUR 500 million per month in export duties.

The U.S. has also committed to applying Most Favoured Nation (MFN) tariffs in certain product categories from September 1, with near-zero tariff rates. The scope of tariff reductions covers products such as mushrooms, aircraft and parts, generic medicines, and chemical precursors, with both sides agreeing to continue cooperation to expand the list.

The EU-US Joint Statement confirms the political agreement reached by President Ursula von der Leyen and President Donald Trump on July 27, 2025. The partnership covers EUR 1.6 trillion worth of goods and services trade in 2024, facilitating a daily flow of EUR 4.2 billion between the two sides. In addition, in 2022, EU and U.S. companies invested EUR 5.3 trillion in each other’s markets.

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