BRUSSELS: The European Union is making a big attempt to ease trade tensions with the US by suggesting that all tariffs on American industrial goods be lifted and that some US agricultural and fisheries exports have special access to European markets. This move is in line with a political deal made between US President Donald Trump and European Commission President Ursula von der Leyen.
The European Commission said in a statement that the measures are the next step in the legislative process to put the “Joint Statement” on transatlantic trade into action in August 2025. The EU’s new law will make it easier for the US to cut its tariffs on European automobiles and car parts from 27.5% to 15%. This cut will be retroactive, starting on August 1, 2025, which would give European carmakers immediate financial help. For instance, Germany sent $34.9 billion worth of new automobiles and parts to the US in 2024.
The recommendations also call for extending the duty-free status of American lobster, which presently includes processed lobster. The Commission is seeking to fast-track the plans by skipping the regular impact assessment, in a bid to get the deal along as swiftly as possible.
Commission President von der Leyen has called the pact “a strong, if not perfect deal” and said it was necessary to give businesses on both sides of the Atlantic stability and predictability. The whole accord is meant to set a 15% tariff limit on most EU exports to the US, with the EU making concessions in return.
The action comes at a time when trade tensions are building around the world. The Trump administration recently put a 50% duty on items from India and raised tariffs on imports from Canada. Even while the trade deal is moving forward, there is still a cause of contention: President Trump has said he will punish countries who tax US tech companies on their internet services. This strategy could have an effect on several EU member states.