On 21 August 2025, the European Union (EU) and the United States (U.S.) issued a Joint Statement outlining initial steps to implement the political agreement reached on 27 July between President von der Leyen and President Trump. The U.S. began implementation by applying a 15% tariff ceiling on EU exports subject to reciprocal duties, inclusive of most-favoured nation (MFN) tariffs.

Today, the European Commission has presented two legislative proposals to implement the EU’s commitments under Section 1 of the Joint Statement. The first eliminates tariffs on all U.S. industrial goods and opens tariff rate quotas (TRQs) for certain U.S. seafood and non-sensitive agricultural products.

Currently, 67% of U.S. industrial goods already enter the EU duty-free or with low tariffs. Full liberalisation will remove an estimated €5 billion (US$5.4 billion) in customs duties otherwise paid by importers of industrial goods. US exports of these goods to the EU were valued at €335 billion (US$362 billion) in 2024. Industrial goods covered include machinery, cars and car parts, wood and pulp, paper, ceramics, and leather.

For agricultural access, TRQs will apply to seafood, nuts, dairy, fresh and processed fruits and vegetables, grains, planting seeds, soybean oilseeds, pork, and bison meat. These are mainly products for which U.S. suppliers already play a role in the EU processing industry. Sensitive products such as beef, poultry, rice, and ethanol are excluded.

The EU proposal also prolongs the tariff-free treatment of lobster that began in December 2020 and extends it to prepared lobster. According to the Commission, this supports the EU food-processing and hospitality sectors.

In parallel, the U.S. has committed to reducing tariffs on EU cars and car parts from 27.5% to 15%. These reductions are expected to apply retroactively from 1 August 2025, the same month the Commission’s proposals were introduced, saving EU carmakers more than €500 million (US$541 million) in duties in a single month.

From 1 September, the U.S. also committed to applying zero or near-zero tariffs to certain product categories, including cork, aircraft and aircraft parts, generic pharmaceuticals, and chemical precursors. Both sides agreed to expand this list in the future.

The proposals now move to the European Parliament and Council under the ordinary legislative procedure before they can enter into force. Meanwhile, the U.S. tariff cuts on EU cars are not conditional on final legislative approval in the EU.

© European CommissionFor more information:
Arianna Podesta
European Commission
Tel: +32 2 298 70 24
Email: [email protected]
www.ec.europa.eu – Source 1
www.ec.europa.eu – Source 2