BRUSSELS (Reuters) -The European Commission proposed on Thursday removing tariffs on imported U.S. industrial goods, part of a trade agreement with the United States that should result in a retroactive lowering of U.S. tariffs on European cars.

The proposal is the first step in enacting the framework agreement between U.S. President Donald Trump and Commission President Ursula von der Leyen on July 27, which saw the EU accept a broad 15% tariff to avoid a damaging trade war.

The United States has agreed to reduce its tariffs on cars built in the European Union to 15% from 27.5% from the first day of the month in which the EU's legislative proposal is presented - meaning from August 1.