The European Union (EU) will strive to ensure lower U.S. tariffs apply to its car exports retroactively, Maroš Šefčovič, Commissioner for Trade and Economic Security, said on Thursday, as the transatlantic partners set out details of their framework trade deal struck in July.
In a joint statement, the two sides spelled out that 15% U.S. tariffs would apply to most EU imports and listed the commitments made, including the EU’s pledge to eliminate tariffs on U.S. industrial goods and to give preferential market access for a wide range of U.S. seafood and agricultural goods.
Washington will take steps to reduce the current 27.5% U.S. tariffs on cars and car parts, a huge burden for European carmakers, once Brussels introduces the legislation needed to enact promised tariff cuts on U.S. goods, it said.
The statement said U.S. tariff relief on autos and auto parts would kick in on the first day of the month in which the EU introduced the legislation.
Šefčovič said it was the European Commission’s “firm intention” to make proposals by the end of the month, meaning the U.S. car tariff reduction would apply from August 1.
A senior administration official, speaking on condition of anonymity because they were not authorized to speak publicly, said European carmakers could see relief from the current U.S. tariffs within “hopefully weeks.”
“As soon as they’re able to introduce that legislation then we will be in a position to provide that relief. And I will say that both sides are very interested in moving quickly,” they said.
U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the deal on July 27 after months of negotiations.
The two leaders met again this week as part of negotiations aimed at ending Russia’s war in Ukraine, with both lauding their trade framework deal as an historic accomplishment. The joint statement said the deal could be expanded over time to cover additional areas and further improve market access.
The joint statement was “a play to hold each other accountable” and ensure that both sides carried out the pledges announced last month, the official said.
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