The European Union (EU) will seek to fast track legislation by the end of the week to remove all tariffs on US industrial goods, a demand made by President Donald Trump for lowering duties on the bloc's automobile exports.
The European Commission, which handles trade matters for the EU, will also give preferential tariff rates on certain seafood and agricultural goods, according to people familiar with the matter.
The EU has conceded that the trade arrangement struck with Trump favors the US but that the accord is necessary to give businesses stability and certainty. Commission President Ursula von der Leyen previously described it as "a strong, if not perfect deal."
The move comes even as Trump has threatened to impose tariffs and other penalties on countries that tax online services, without specifying which nations he would target and whether the EU would be involved. Trump has long railed against EU tech and antitrust regulation over US tech giants including Alphabet's Google and Apple.
EU cars and auto parts currently face a 27.5% tariff on exports to the US. Even though the US and EU struck a trade agreement that would see American tariffs on nearly all European products drop to 15%, Trump said that wouldn't apply to cars until legislation was proposed to remove industrial and other duties.
If the EU proposes the legislation by the end of the month, then the 15% tariff rate on European cars will be back-dated to Aug 1. Automobiles are one of the bloc's most significant exports to the US, with Germany alone exporting $34.9 billion of new cars and parts to the country in 2024.
Japanese Negotiator on 10th Visit to washington
Japan's top trade negotiator Ryosei Akazawa will visit the US this week to press Washington to implement lower the tariffs agreed in July including lower duties on cars and auto parts. His latest visit, starting Thursday, will be the 10th since the start of bilateral trade talks this year. Even though both sides struck a deal in July, the US has yet to deliver what it promised to do.
Japan wants the US to cut its tariffs on cars and car parts to 15% and to end the stacking of previous duties on 15% universal tariffs. Those demands require US President Donald Trump to issue an executive order on the car tariffs and amend his previous order on the across-the-board levies.
"The revision of reciprocal tariffs and the cut of auto tariffs are expected to take place simultaneously," Akazawa said at a press conference in Tokyo on Wednesday evening.
Japan wants the lower car tariffs to kick in as soon as possible as the sector accounts for the biggest chunk of its exports to the US. The Japanese economy grew faster than expected last quarter, but overall exports are continuing to fall due to the US tariffs.
The European Commission, which handles trade matters for the EU, will also give preferential tariff rates on certain seafood and agricultural goods, according to people familiar with the matter.
The EU has conceded that the trade arrangement struck with Trump favors the US but that the accord is necessary to give businesses stability and certainty. Commission President Ursula von der Leyen previously described it as "a strong, if not perfect deal."
The move comes even as Trump has threatened to impose tariffs and other penalties on countries that tax online services, without specifying which nations he would target and whether the EU would be involved. Trump has long railed against EU tech and antitrust regulation over US tech giants including Alphabet's Google and Apple.
EU cars and auto parts currently face a 27.5% tariff on exports to the US. Even though the US and EU struck a trade agreement that would see American tariffs on nearly all European products drop to 15%, Trump said that wouldn't apply to cars until legislation was proposed to remove industrial and other duties.
If the EU proposes the legislation by the end of the month, then the 15% tariff rate on European cars will be back-dated to Aug 1. Automobiles are one of the bloc's most significant exports to the US, with Germany alone exporting $34.9 billion of new cars and parts to the country in 2024.
Japanese Negotiator on 10th Visit to washington
Japan's top trade negotiator Ryosei Akazawa will visit the US this week to press Washington to implement lower the tariffs agreed in July including lower duties on cars and auto parts. His latest visit, starting Thursday, will be the 10th since the start of bilateral trade talks this year. Even though both sides struck a deal in July, the US has yet to deliver what it promised to do.
Japan wants the US to cut its tariffs on cars and car parts to 15% and to end the stacking of previous duties on 15% universal tariffs. Those demands require US President Donald Trump to issue an executive order on the car tariffs and amend his previous order on the across-the-board levies.
"The revision of reciprocal tariffs and the cut of auto tariffs are expected to take place simultaneously," Akazawa said at a press conference in Tokyo on Wednesday evening.
Japan wants the lower car tariffs to kick in as soon as possible as the sector accounts for the biggest chunk of its exports to the US. The Japanese economy grew faster than expected last quarter, but overall exports are continuing to fall due to the US tariffs.
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