The proposal seeks to decrease car tariffs and enhance access to US products, bolstering transatlantic trade stability.
Brussels, September 4, 2025 — The European Commission unveiled two legislative proposals to enact the EU-US Joint Statement signed on August 21, 2025. These actions will enable a retroactive reduction of US tariffs on crucial EU automotive exports, effective from August 1, 2025.
The plan aims to restore stability and predictability in transatlantic trade and investment, benefiting businesses, workers, and consumers on both sides.
Lower tariffs and enhanced market access
The first proposal aims to eliminate tariffs on US industrial goods and provide preferential market access to various US seafood and non-sensitive agricultural products.
The second proposal extends tariff-free status to lobster, including processed lobster, continuing an existing measure.
The US also pledged to implement a 15% tariff ceiling on EU cars and car parts, reduced from the current 27.5%, with the change retroactive from August 1. This reduction is expected to save EU car manufacturers over €500 million in duties in a single month.
Starting September 1, certain product categories will shift to zero or near-zero tariffs, with only the most-favoured nation (MFN) rates applying. These include aircraft and parts, generic pharmaceuticals, their ingredients, chemical precursors, and certain natural resources like cork. Both parties have agreed to expand this list in future discussions.
Next steps in the legislative process
These Commission proposals are the first legal step toward implementing the EU’s commitments under Section 1 of the Joint Statement. The European Parliament and the Council of the EU must approve the measures under the ordinary legislative procedure before they take effect.
Negotiations will also continue for a future EU-US Agreement on Reciprocal, Fair, and Balanced Trade, with both sides seeking further tariff reductions.
A vital transatlantic relationship
The transatlantic trade partnership remains the world’s largest bilateral trade and investment relationship. In 2024, EU-US trade in goods and services exceeded €1.6 trillion, including €867 billion in goods and €817 billion in services — over €4.2 billion crossing the Atlantic daily.
Investment ties are equally robust. By 2022, EU and US companies had invested €5.3 trillion in each other’s markets, highlighting the depth of the economic relationship.
The new tariff deal marks a step toward greater cooperation, strengthening one of the most critical economic corridors in the global economy.
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