The EU Commission has started implementing its trade agreement with the United States, aiming to ease the burden on the EU automotive sector. However, the adoption of the legislation is not guaranteed, as some MEPs have criticized the deal as unbalanced.
The Commission’s legislative proposal would reduce tariffs on a wide range of US industrial and agricultural products. It targets immediate relief for the EU automotive sector, as the US has agreed to lower its 27.5% tariffs on EU cars to 15% retroactively from 1 August, contingent on the Commission’s proposal.
Under the agreement, tariffs on most US industrial products—including machinery, pharmaceuticals, chemicals, plastics, and fertilizers—would drop to 0%, helping the EU reduce dependence on Russia. Some agricultural products, such as fruits, juices, and certain seeds, are also included. Tariff-rate quotas are planned for 20 product groups, including pork (25,000 tonnes), dairy products (10,000 tonnes), cheese (10,000 tonnes), and soybeans (400,000 tonnes), which would benefit from 0% tariffs below the set thresholds.
Although the deal favors the US—EU tariffs will remain at 15%—Brussels reserves the right to suspend advantages if the US fails to comply with the agreement or if a sudden surge in imports threatens EU industry.
The proposal must be approved by both the European Parliament and the EU Council, which represents member states.
Criticism of the Deal
MEPs responsible for trade will hold a session on 3 September, expected to be contentious. Some see the deal as unbalanced. Sabine Weyand, Director-General of DG Trade and chief negotiator, will attend to answer questions. French liberal MEP Marie-Pierre Vedrenne criticized the agreement as politically humiliating, noting the unpredictability of the US under Trump, who has already threatened tariffs on countries implementing digital legislation.
Swedish MEP Jörgen Warborn emphasized the need to fully understand the deal before making a decision, expressing concerns about its compatibility with WTO rules, which require that preferential tariffs granted to one country must also be extended to others.