EU to Eliminate All Tariffs on US Industrial Goods: "Aimed at Early Reduction of Auto Tariffs"

Commission Announces Two Legislative Proposals to Implement US Trade Agreement Statement
Prerequisites for US Measures
"Approval Required from at Least 15 out of 27 EU Member States"

Ursula von der Leyen, President of the European Commission, is holding a press conference on the 28th (local time) at the EU headquarters in Brussels, Belgium. Photo by AP

On August 28 (local time), the European Commission announced two legislative proposals aimed at implementing the joint EU-US trade agreement statement. The move appears to be a swift effort to fulfill the prerequisites for lowering tariffs on cars exported from Europe to the United States.

The first bill focuses on the complete elimination of tariffs on US-manufactured industrial goods and the expansion of tariff rate quotas (TRQs) for US seafood and non-sensitive agricultural products, thereby granting preferential market access. Non-sensitive agricultural products include dairy, pork, nuts, seafood, and bison meat. In contrast, beef and poultry are classified as sensitive items and are excluded from this measure.

The second bill extends the existing tariff exemption period for US lobster, which expired on July 31. It also expands the range of eligible products to include processed lobster.

Both legislative proposals announced on this day are specified in Article 1 of the joint EU-US statement. The statement stipulates that the United States will reduce tariffs on EU automobiles and auto parts from 27.5% to 15%, on the condition that the EU implements Article 1 first.

Furthermore, regardless of the actual legislative process within the EU, the United States has promised to lower automobile tariffs as soon as the draft legislation is announced. It is clearly stated that "the tariff reduction is expected to take effect from the first day of the month in which the legislative proposal is announced."

The Commission explained that if the legislative proposal is prepared in August, the 15% tariff rate on automobiles could be retroactively applied from August 1. The Commission emphasized, "We prepared the legislation within August to ensure that the automotive industry, a key sector for the EU, can benefit from the US tariff reduction as soon as possible."

Politico Europe reported that for the legislation to take effect, it must receive approval from at least 15 out of 27 EU member states and a majority in the European Parliament. While debates are expected in Parliament regarding the agricultural sector and the implementation period, the newspaper added that many conservative lawmakers expressed support, stating it is a "painful but correct agreement."

This content was produced with the assistance of AI translation services.