The European Commission plans to present a legislative proposal on Wednesday to reduce EU tariffs on industrial goods from the USA to zero.

The aim is to force the US to reduce its auto tariffs from the current 27.5 percent to 15 percent, retroactively to August 1. This is reported by the "Handelsblatt" newspaper, citing EU diplomats and industry circles. The chairman of the EU Trade Committee, Bernd Lange (SPD), also confirmed to the "Handelsblatt" that the Commission will submit a corresponding legislative proposal on Wednesday. The US was originally supposed to reduce its car tariffs when the flat 15 percent tariff came into effect on August 1.

US President Donald Trump and EU Commission President Ursula von der Leyen agreed on this at a meeting in Scotland at the end of July. The EU also promised its own tariff reductions, but wanted to link these to a more comprehensive trade agreement. After weeks of uncertainty, the regulation now brings clarity to German automakers BMW, Mercedes, and Volkswagen – albeit under less favorable conditions than before. For decades, EU manufacturers had to pay only a 2.5 percent tariff on car exports to the US, while US exports to Europe were subject to a 10 percent tariff. The German auto industry has recently expressed cautious optimism. On Thursday, the EU and the US clarified their tariff deal in a joint statement. The US side attached conditions to the reduction of car tariffs from the current 27.5 percent to 15 percent. The VW Group welcomed the move as an important contribution to greater planning security. Hildegard Müller, President of the German Association of the Automotive Industry (VDA), recently stated: "The long-term goal must be to return to a lower tariff rate."