EU, US reach framework to cut auto tariffs and remove most duties

Brussels moved this week to enact a politically brokered trade framework with Washington, proposing the removal of EU duties on imported U.S. industrial goods and other concessions designed to secure a U.S. cut in auto tariffs, European officials said. The package, unveiled by the European Commission on Thursday, aims to trigger a reduction of U.S. duties on cars and auto parts to 15 percent from 27.5 percent, with Washington agreeing that the lower rate apply retroactively to Aug. 1 once Brussels presents its legislation.

European Commission President Ursula von der Leyen defended the deal in an op ed published over the weekend, calling it "strong, if not perfect" and arguing that the agreement was a deliberate choice for stability over escalation. She warned that failure to reach an accord between the two largest democratic economies would have opened the door to a damaging trade war, a result she said would have been hailed by geopolitical rivals. Von der Leyen also highlighted elements of the framework beyond tariffs, including deeper energy cooperation and commitments to boost transatlantic investment and supply chains.

Under the proposals, the EU would eliminate tariffs on...