The European Union is moving swiftly to eliminate tariffs on U.S. industrial goods in an urgent effort to protect its crucial car exports from steep American duties, according to sources cited by Bloomberg News.
Brussels is expected to fast-track legislation this week to scrap industrial tariffs — a key demand from former U.S. President Donald Trump, who has made it a condition for reducing the 27.5% tariff currently imposed on European automobiles and parts.
In addition to cutting industrial tariffs, the EU is reportedly offering further concessions, including preferential treatment for American seafood and agricultural exports. While EU officials acknowledge that the emerging deal heavily favors Washington, they argue it is a necessary compromise to ensure trade stability and end years of economic uncertainty.
“It’s a strong, if not perfect deal,” said European Commission President Ursula von der Leyen on Tuesday.
The urgency of the move is underscored by the European Commission’s decision to bypass its usual impact assessment — an extraordinary step in EU policy-making, underscoring the high stakes and fast-approaching deadline.
If the EU meets Trump’s terms by the end of August, the U.S. will reduce its auto tariff to 15% retroactively from August 1 — a critical reprieve for Germany, the EU’s automotive powerhouse, which shipped nearly $35 billion in cars and parts to the U.S. last year.
The U.S. exports a wide array of industrial goods to Europe — including aircraft parts, engines, semiconductors, steel, and chemicals — forming the backbone of transatlantic trade. Last year, the U.S. and EU exchanged over $1.8 trillion in goods and services.
This rapid negotiation follows a July framework agreement between Trump and von der Leyen. Under that outline, the U.S. pledged to lower tariffs on most European goods to 15% if the EU eliminated its own industrial duties and expanded market access for U.S. exporters. The EU also committed to major energy purchases and new investment in the American economy — promises that critics say lean heavily in favor of U.S. interests.
However, the automotive sector remains the central flashpoint. While most European products stand to benefit from the deal, Trump has insisted that car imports remain under higher duties unless the EU delivers fully on his terms. That firm stance has drawn criticism from European manufacturers and industry groups, especially in Germany, warning that Brussels may be conceding too much to avoid further trade conflict.
Adding to tensions, Trump has threatened new retaliation against governments that tax digital services — a direct challenge to EU regulations aimed at reining in U.S. tech giants such as Google and Apple. The clash over digital sovereignty suggests that despite the current trade breakthrough, another confrontation with Washington could be on the horizon.
Both sides issued statements following the agreement.
“We reached a negotiated solution to avoid a lose-lose tariff escalation, giving firms clarity and predictability while protecting European jobs and supply chains,” said a European Commission spokesperson.
White House spokesperson Kush Desai added: “President Trump’s trade agreement with the European Union was a historic win that finally restores a level playing field for American industries and workers in transatlantic trade between the world’s two biggest economies.”
