By John Meyer, consultant in financial affairs – Eurasia Business News, August 28, 2025. Article no. 1748
The European Union has proposed eliminating tariffs on American industrial goods and giving preferential treatment to some U.S. agricultural and seafood products. This move is part of a trade agreement aiming to prompt the United States to lower its tariffs on European cars and auto parts from 27.5% to 15%, effective retroactively from August 1, 2025.
The EU’s legislative proposal marks the first step to implement the trade framework agreed upon on July 27 between U.S. President Donald Trump and European Commission President Ursula von der Leyen. The agreement is seen as a way to avoid a damaging trade war and includes commitments from the EU to reduce tariffs and increase purchases of U.S. energy while the U.S. agrees to cut tariffs on European vehicles.
The EU proposal still requires approval by the member states and European Parliament, but the U.S. reduction in tariffs on EU cars is set to precede this approval. Key elements include removing tariffs on U.S. industrial goods and extending tariff-free treatment for some U.S. seafood like lobsters, including processed varieties.
In July the European Union (EU) was preparing to implement 30% tariffs on approximately €100 billion (equivalent to $117 billion) worth of U.S. goods if a trade deal is not reached and the U.S. proceeds with its threat to impose similar tariffs on EU exports after August 1 . These retaliatory measures are designed to match the proposed U.S. tariffs .
Our community already has 160,000 readers, joins us !
Subscribe to our Telegram channel
Eurasia Business News 