EU Eyes Tariff Removal on US Goods Amid Trade Deal Push

EU Accelerates Efforts to Remove Tariffs on US Industrial Goods

Sources familiar with the matter reveal that the European Union is planning to expedite the process of approving legislation aimed at eliminating tariffs on all US industrial products. This move comes in response to a request from former US President Donald Trump, who made it a condition for reducing US tariffs on European automobile exports.

In addition, the European Commission, responsible for managing the EU's trade affairs, intends to grant preferential tariff rates to certain US seafood and agricultural products.

While the EU acknowledges that this trade arrangement favors the United States, it considers the agreement necessary to provide stability and certainty for businesses. European Commission President Ursula von der Leyen previously described the agreement as "imperfect but effective.""

Trump's Threats of Digital Tariffs

These moves come as Trump has threatened to impose tariffs and other penalties on countries that tax US internet services. However, Trump has not specified which countries he will target, or whether the EU will be involved.

Trump has long criticized the EU for its technology and antitrust regulations on US tech giants, including Alphabet (Google's parent company) and Apple.

Impact of Tariffs on European Automobiles

Exports of automobiles and auto parts from the EU to the US are currently subject to tariffs of 27.5%. Although the US and the EU have reached a trade agreement that reduces US tariffs on almost all European products to 15%, Trump has stated that this rate will not apply to automobiles until the EU proposes legislation that eliminates tariffs on industrial products and others.

If the EU submits this legislation by the end of this month, the tariff rate of 15% on European automobiles will be retroactive to August 1. Automobiles are one of the most important goods exported by the EU to the United States, with Germany alone exporting new cars and parts worth $34.9 billion to the US in 2024.

Accelerating Legislative Procedures

Sources familiar with the matter stated that to expedite the process, the European Commission will bypass conducting an impact assessment, which is a common procedure in such cases.

European Aluminum Industry Crisis

In addition, foreign media reports indicate that Trump's tariff policies are causing large quantities of European aluminum scrap to be diverted to the United States, threatening the survival of local recycling plants in Europe. As a result, the EU is preparing to take emergency measures to support the struggling European aluminum industry. US tariffs have caused a "double blow" to this industry.

This sector has sales of €40 billion annually, employs 250,000 people directly, and supports another one million jobs indirectly. Exports of aluminum to the United States are subject to tariffs of 50%, which has severely affected sales, while exports of aluminum scrap are not subject to any tariff restrictions.

The tariffs have led to higher aluminum prices in the United States, which has increased the income of domestic producers, thus enabling them to pay higher prices to acquire (European) old metals, causing a shortage of raw materials in recycling plants and smelters in Europe, some of which have been forced to stop production.

Proposed EU Measures

The European Commission is considering several measures and plans to announce them in September. Two officials said that the measures may include imposing tariffs on all exports of aluminum scrap from the EU. One official said, "At the latest by the end of the third quarter, the Commission will consider taking trade measures to ensure an adequate supply of aluminum scrap."