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The EU is ready to cancel duties on US manufactured goods in order to reduce tariffs on cars


August, 27 2025
watermark Economic news

The European Union intends to adopt a law on the abolition of all duties on industrial goods from the United States by the end of the week. This step is a condition of President Donald Trump: in return, Washington will reduce tariffs on the European car industry.


According to sources, the European Commission will also provide preferential tariffs for certain types of seafood and agricultural products. Brussels recognizes that the agreement is more beneficial for the United States, but considers it necessary to ensure the predictability of business. The head of the European Commission, Ursula von der Leyen, called him «strong, although not perfect.»


The decision was made against the background of Trump's threats to impose new tariffs against countries that tax online services. The American president has long criticized the EU's policy towards Google, Apple and other US technology companies.


Currently, the export of cars and auto parts from the EU to the USA is subject to a duty of 27.5%. Despite the agreement to reduce most U.S. tariffs to 15%, Trump said it would not apply to the auto industry until the EU lifted industrial duties.


Cars remain a key export item: Germany alone supplied $34.9 billion worth of cars and components to the United States in 2024.



    






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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.