Although the United States and the EU reached a trade agreement that provides for the reduction of US tariffs on nearly all European products to 15%, Donald Trump stated that this will not apply to automobiles until legislation is proposed to eliminate industrial and other tariffs. EU automobiles and automotive parts currently face 27.5% tariffs on exports to the US. The EU has acknowledged that the trade agreement reached with Trump is favorable to the US, but also necessary for businesses to operate in a climate of stability. European Commission President Ursula von der Leyen described it as a “strong, if not perfect agreement.” However, the EU is moving toward submitting a legislative proposal by the end of the week to eliminate all tariffs on American industrial products
The European Commission will also provide preferential tariff rates on certain seafood and agricultural products, according to Bloomberg citing sources familiar with the matter.
It should be noted that Trump has long criticized the EU’s technology and antitrust regulation of American tech giants, including Alphabet Inc.’s Google and Apple.
Tariffs: What will apply to automobiles
If the EU proceeds with the legislative proposal within the month, then the reduced 15% tariffs for European automobiles will apply retroactively from August 1st. Automobiles are among the most significant export products from the European Union to the US, with Germany alone exporting cars and spare parts worth $34.9 billion in 2024.
In an effort to accelerate the process, the Commission intends to bypass the established impact study – a standard procedure in such cases – according to the same sources.
