(Bloomberg) — The European Union said it’s followed through on a demand by President Donald Trump and has adopted draft regulations to remove all tariffs on U.S. industrial goods and give preferential treatment to some US agricultural and seafood products.

This will pave the way for the U.S. to lower its tariffs on European cars and auto parts to 15% from 27.5%, according to a Thursday statement from the European Commission, which handles trade matters for the EU. The lower rate on cars will start retroactively from Aug. 1.

The European Parliament and member states will have to approve the regulations, but the EU expects that the US can lower the car tariffs immediately, according to a commission official, who spoke on the condition of anonymity.

The EU struck a political trade arrangem

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