The European Commission has proposed eliminating import tariffs on U.S. industrial goods as a part of a new trade agreement with the United States. This proposal is intended to remove retroactive tariffs imposed by the US on European automobiles. This initiative marks the first step in implementing the framework agreement reached between U.S. President Donald Trump and European Commission President Ursula von der Leyen on July 27. The EU agreed to a broad 15% tariff as part of this agreement, aiming to avoid escalating trade conflicts. The US has reciprocated by reducing tariffs on EU-made cars from 27.5% to 15% on August 1st – the first day of the month when the EU legislative proposal was submitted.