European Commission proposes elimination of tariffs on industrial goods with US

BRUSSELS - The European Commission proposed on Friday the elimination of tariffs for industrial goods with the United States in future trade talks. The proposal will need approval from European Union member states.

The US is the main export destination of EU exports in industrial goods and is the second largest exporter of industrial goods to the EU. EU-US trade in goods amounted to 633 billion euros (about $722 billion) in 2017, of which 598 billion euros are in industrial goods, according to a press release by the European Commission.

In general, both the EU and the US have low tariffs on industrial goods. The average tariff rates on non-agricultural products are 4.2 percent and 3.1 percent respectively, said the press release.

"While applied tariffs levels are relatively low, the sheer size of our trade relationship means that the elimination of all tariffs of industrial goods will have an important impact on businesses and consumers on both sides of the Atlantic," it said.

An internal analysis by the European Commission showed that if zero tariff on industrial goods comes true, EU exports of goods to the US would increase by 10 percent and US exports to the EU would increase by 13 percent.