The European Union is accelerating legislation to eliminate tariffs on all U.S. industrial goods by the end of the week, in response to President Donald Trump’s demand for reducing tariffs on EU car exports to the United States. According to Firstpost, citing Bloomberg, the European Commission, responsible for the EU’s trade policy, also plans to introduce preferential tariff rates on certain seafood and agricultural products.

The EU has acknowledged that, although the trade agreement leans in favor of the U.S., it is essential to provide businesses with stability and predictability in light of Trump’s ongoing tariff threats. European Commission President Ursula von der Leyen called it a strong, perfect deal.

The development follows President Trump’s warning of new tariffs on countries he accuses of targeting American tech companies, claiming that digital taxes on U.S. firms are meant to undermine the nation’s technology interests.

Several countries, especially in Europe, have imposed taxes on the revenue generated by digital service providers such as Alphabet’s Google, Meta’s Facebook, Apple, and Amazon. The matter has been a persistent source of trade tension for the U.S. administration.

If the EU passes the legislation by the end of the month, the 15% tariff on European cars will be applied retroactively from August 1. Automobiles are one of the bloc’s major exports to the U.S., with Germany alone sending $34.9 billion worth of new vehicles and auto parts to the American market in 2024.

Vehicles and automotive components produced within the EU are currently subject to a 27.5% export tariff when entering the U.S. market. While a trade agreement between the United States and the European Union lowers tariffs on most European products to 15%, President Trump clarified that this reduced rate would not extend to automobiles until formal legislation is enacted to remove industrial and associated tariffs.

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