European Union proposes to cancel tariffs on US goods, pushing the US to reduce auto tariffs

The European Union Commission on Thursday proposed eliminating import tariffs on US industrial goods as part of a trade deal with the US that should reduce retroactively US tariffs on European cars. The proposal is the first step in implementing the July 27 framework agreement between US President Donald Trump and European Union Commission President von der Leyen, under which the European Union accepts broad tariffs of 15 per cent to avoid a damaging trade war. The US has agreed to reduce tariffs on European Union-made cars from 27.5 per cent to 15 per cent as of August 1, the first day the proposed legislation is submitted.