The European Union is preparing to fast-track legislation to remove tariffs on US industrial goods by the end of the week, responding to pressure from President Donald Trump to ease duties on EU automobile exports.
The proposal includes retroactive application of a 15% tariff rate on European cars exported to the United States, backdated to August 1. The move bypasses standard impact assessments to ensure swift implementation, underscoring the EU’s urgency to stabilize transatlantic trade ties.
Commission President Ursula von der Leyen described the potential agreement as a “strong, perfect deal,” emphasizing the EU’s commitment to balancing economic interests while addressing US concerns over trade imbalances. The automotive sector, particularly Germany, stands to gain significantly, with billions in car exports to the US at stake.
Analysts warn that delays in adopting the legislation could invite retaliatory US measures affecting other key sectors, including technology and agriculture. Successful implementation, however, could ease tensions and provide a boost to EU manufacturers.