By Brian Swint

The European Union is prepared to remove all tariffs on U.S. industrial imports to the bloc in exchange for lower vehicle levies on EU exports to the States, according to a Bloomberg report.

The European Commission, the executive arm of the EU which negotiates trade deals for its 27 member states, will get legislation through addressing industrial-goods tariffs by the end of the week, Bloomberg reported, citing people close to the matter.

That would meet a key demand from President Donald Trump before his administration is willing to lower the rate that EU automakers face on cars sent to the U.S. -- EU cars and parts are currently subject to a 27.5% U.S. tariff. Most goods are only subject to a 15% tax after the most recently negotiated trade deal, but Trump refused to apply that rate to cars until further demands were met.

That could be good news for European brands like Porsche, BMW, Ferrari, and Volkswagen. While many European car makers already make cars within the U.S., the lighter import tax could have an impact on U.S. producers such as Ford, General Motors, and Stellantis.

If the fast-tracked legislation gets through this month, then the 15% rate on European cars would be backdated to Aug. 1. Automobiles are one of Europe's biggest exports to the U.S.

The EU will also give preferential tariff rates on some seafood and agriculture products, the Bloomberg report said. Trump has also railed against digital taxes on U.S. tech companies imposed by Europe but that doesn't appear to be a part of the deal.

The EU Commission didn't immediately respond to a request for comment.

Write to Brian Swint at brian.swint@barrons.com

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August 27, 2025 07:49 ET (11:49 GMT)

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