EU Introduces Bills to Eliminate Industrial Tariffs for US Exports
The EU announced Aug. 28 that it had proposed a return to duty-free treatment for American lobster exports, and added processed lobster to that category, and to eliminate tariffs on American industrial goods and to provide preferential access for other U.S. seafood and what the EU called "non-sensitive agricultural goods."
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Both proposals will be considered by the European Parliament.
U.S. trade officials had said that introducing bills was enough to trigger a reduction in auto tariffs to 15%, including MFN, for all goods that have an MFN rate of 15% or less. However, the Office of the U.S. Trade Representative and a White House official didn't confirm that the EU announcement will trigger such a change.
The EU wrote, "These proposals are the first steps in said implementation and ensure tariff relief by the US for the vital EU automotive sector starting retroactively from 1st of August."
They said that cars that owed 27.5% duty from Aug. 1 until now will instead owe 15%. "This will save car makers more than €500 million in duties that would have otherwise been paid for exports" each month.
Bernd Lange, the head of the parliament's trade committee, wrote on X that now the "U.S. must immediately lower tariffs on cars. We also need clear timetable [for] reaching tariffs on other products," giving wine and spirits and a tariff rate quota system for steel and aluminum as examples.
He said the parliament "will carefully examine the proposals & amend them if necessary. This legislation cannot be a blank cheque for eternity."
He added, in reference to President Donald Trump's recent post threatening tariffs over digital policies: "If the trade partnership between the EU and the US is to continue and deepen, the constant threats must stop, especially with regard to EU legislation and the EU's right to regulate."