Washington/Brussels (Reuters)-The European Union will strive to ensure that lower US tariffs will be applied retroactively to its car exports, said EU’s head of commerce, Maros Sefcovic, on Thursday, when partners defined the details of their trade agreement signed in July.
In a joint statement of three and a half pages, the two sides explained that 15% of the US fees will apply to most EU imports and listed the commitments made, including the EU’s promise to eliminate tariffs on US industrial products and to give preferential access to the market for a wide range of seafood and US agricultural products.
Washington will take action to reduce current 27.5% American tariffs on cars and automotive pieces, which represents a huge burden on European automakers, when Brussels submit the necessary legislation to promulgate promised tariff cuts on US products, the statement said.
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According to the statement, the reduction of US car tariffs and auto parts will come into force on the first day of the month in which the EU presents the legislation.
Sefcovic said the European Commission has the “firm intention” of submitting proposals by the end of the month, which means that the reduction of US car tariff would be applied from August 1.
A senior US government official, who spoke on anonymous condition because he was not allowed to speak publicly, said European automakers could get relief from current US tariffs within “weeks.”
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US President Donald Trump and European Commission President Ursula Von Der Leyen announced the agreement on July 27 at Trunberry’s luxurious golf course, Scotland, after months of negotiations.
The two leaders met again this week as part of the negotiations aimed at ending the Russian War in Ukraine, and both praised their trade agreement as a historical achievement. The joint statement said the agreement can be expanded over time to cover additional areas and further improve market access.
The joint statement was “a move to hold each other” and ensure that both sides fulfill the promises announced last month, the official said.
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The joint statement noted that the US agreed to apply only pre-existing nation fares of the most favored nation below 15% from September 1 on EU aircraft and parts, generic pharmaceuticals and ingredients, chemical precursors and unavailable natural resources, including cork.
This exemption was applied to include wine or alcohol, an important EU demand, but both sides agreed to consider other sectors and products for inclusion.
“Therefore, these doors are not closed forever,” said Sefcovic, although recognizing that it will not be easy to guarantee an exemption for alcoholic beverages.
