Rows of Volkswagen ID Buzz electric buses are parked at the National City Marine Terminal, a major port for vehicle imports and exports to the U.S.
Kevin Carter | Getty Images News | Getty Images
The European Union formally proposed Thursday to remove tariffs on American industrial goods, fulfilling a key element of the U.S.-EU framework trade agreement and ensuring that lower automobile tariffs will be retroactive to the beginning of August.
The European Commission, the executive arm of the EU, said in a statement that the removal of duties on industrial goods, along with providing “preferential market access” for some U.S. seafood and agricultural goods, would “ensure tariff relief by the US for the vital EU automotive sector starting retroactively from 1st of August.”
“These steps contribute to restoring stability and predictability in EU-US trade and investment relations, to the benefit of business, workers and citizens on both sides of the Atlantic,” it added.
The proposal, which now needs to be approved by the European Parliament and Council, was first outlined last week in a joint statement from the two trade partners. In it, they said the United States “expects the European Union’s legislative proposals will be … enacted by the necessary legislatures.”
It said tariffs on autos would be reduced from the first day of the month when the EU’s legislative proposal were introduced — which means the duties should be cut from Aug. 1.
The U.S. and EU announced they had reached a trade deal — after weeks of tense negotiations — at the end of July. U.S. President Donald Trump said the deal would see a 15% tariff imposed on most European goods to the U.S., including cars.
The rate came as a relief to the United States’ largest trading partner after Trump previously threatened it with duties of 30%. Under the deal, the EU also committed to purchase $750 billion worth of U.S. energy and invest at least an additional $600 billion in the U.S.