The proposal aims to lower car tariffs and boost access to US products, strengthening transatlantic trade stability.
Brussels, September 4, 2025 — The European Commission today presented two key legislative proposals to implement the EU-US Joint Statement signed on August 21, 2025. These measures will allow for a retroactive reduction of US tariffs on vital EU automotive exports, effective from August 1, 2025.
The initiative is designed to restore stability and predictability in transatlantic trade and investment, benefiting businesses, workers, and consumers on both sides of the Atlantic.
Lower tariffs and wider market access
The first proposal seeks to remove tariffs on US industrial goods and grant preferential market access to a range of US seafood and non-sensitive agricultural products.
The second proposal extends tariff-free treatment to lobster, now including processed lobster, continuing a measure already in place.
The US has also committed to implementing a 15% tariff ceiling on EU cars and car parts, down from the current 27.5%, with the change effective retroactively from August 1.
This reduction alone is expected to save EU car manufacturers over €500 million in duties that would otherwise have been paid in a single month.
Additionally, starting September 1, certain product categories will move 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 such as cork. Both sides have agreed to expand this list further in future talks.
Next steps in the legislative process
These Commission proposals are the first legal step toward enacting the EU’s commitments under Section 1 of the Joint Statement.
The European Parliament and the Council of the EU must now approve the measures under the ordinary legislative procedure before they can take effect.
Negotiations will also continue toward a future EU-US Agreement on Reciprocal, Fair, and Balanced Trade, with both sides seeking to reduce tariffs even further.
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 surpassed €1.6 trillion, including €867 billion in goods and €817 billion in services — over €4.2 billion crossing the Atlantic every day.
Investment ties are equally strong. By 2022, EU and US companies had invested €5.3 trillion in each other’s markets, underscoring the depth of the economic relationship.
The new tariff deal marks a step toward greater cooperation, reinforcing one of the most critical economic corridors in the global economy.
