US Maintains High Tariffs on European Automakers Until EU Acts on US Goods
The United States plans to maintain elevated tariffs on European automotive manufacturers until the European Union (EU) implements reductions on American products. This announcement follows the establishment of a trade framework between the two major economies, finalized on Thursday.
A joint declaration outlined the commitments made after lengthy negotiations, which were spurred by President Trump and EU Commission President Ursula von der Leyen’s announcement of the agreement on July 27.
In the statement, officials indicated that the US would consider lowering the current 27.5% tariffs on European cars and parts, contingent upon the EU enacting the necessary legislative changes to facilitate the agreed tariff reductions on US goods.
A senior administration official informed Reuters that automakers might receive tariff relief in "hopefully weeks." They added, "Once the EU introduces the relevant legislation—though it doesn’t need to be fully passed—then we can offer that assistance. Both sides are eager to expedite this process."
However, the timeline for Brussels to commence its legislative process remains unclear.
Under the terms of this framework, the EU committed to abolishing tariffs on a range of US industrial products and granting preferential market access to various US seafood and agricultural items.
Conversely, the US agreed to impose a 15% tariff on many imports from the EU, including vehicles, pharmaceuticals, semiconductors, and timber.
The officials characterized the joint statement as a means to ensure accountability, compelling both sides to fulfill their pledges.
"We aim to coordinate with the EU to ensure they are under sufficient pressure to secure the necessary mandate for beginning the legislative process to reduce their tariffs, as they have assured," the official noted.
They expressed confidence that the EU would comply, emphasizing the mutual benefits of synchronizing actions and ensuring aligned commitments.
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