EU proposes removal of tariffs on U.S. goods to pave way for lower duties on cars

European Commission President Ursula von der Leyen at EU headquarters in Brussels on Thursday.

The European Commission proposed on Thursday removing tariffs on imported U.S. industrial goods, part of a trade agreement with the United States that should result in retroactive cuts to U.S. tariffs on European cars.

The proposals are the first EU step in enacting the framework agreement between U.S. President Donald Trump and Commission President Ursula von der Leyen on July 27, which saw the EU accept a broad 15-per-cent tariff to avoid a damaging trade war.

The United States has agreed to reduce its tariffs on cars built in the European Union to 15 per cent from 27.5 per cent from the first day of the month in which the EU’s legislative proposal was presented – meaning from Aug. 1.