Tariff relief targets EU seafood, automotive and non-sensitive goods

The European Commission has introduced proposals to implement the EU-US Joint Statement from 21 August 2025, aiming to reduce tariffs and enhance trade relations between the two regions. These proposals mark the initial steps towards fulfilling the commitments outlined in the statement, which promises tariff relief for the EU automotive sector, effective retroactively from 1 August.

Background

The EU-US Joint Statement, issued on 21 August, builds on a political agreement reached earlier between President von der Leyen and President Trump. This agreement seeks to restore stability and predictability in transatlantic trade and investment, which is a cornerstone of global commerce. The EU and the US share the largest bilateral trade and investment relationship worldwide, with trade in goods and services surpassing €1.6 trillion in 2024.

Market Implications

The Commission's proposals include eliminating tariffs on US industrial goods and granting preferential market access for specific US seafood and non-sensitive agricultural products. Additionally, the proposals aim to extend tariff-free treatment for lobsters, now covering processed varieties as well. These measures are expected to significantly benefit the EU automotive sector, with a reduction in US tariffs on EU cars and car parts from 27.5% to 15%, potentially saving over €500 million in duties for exports in just one month.

Further, the US has committed to applying zero or near-zero tariffs on certain product categories, including unavailable natural resources and aircraft parts, starting 1 September. Both parties have agreed to explore expanding this list to include more products.

Next Steps

The European Parliament and Council must approve the Commission's proposals under the ordinary legislative procedure before the tariff reductions can be enacted. This legislative action is crucial for the EU to meet its commitments under the Joint Statement and ensure the agreed tariff reductions take effect.

Overall, these developments represent a significant step towards enhancing EU-US trade relations, offering substantial benefits to businesses and consumers on both sides of the Atlantic.

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