Game-Changing EU-US Trade Deal Eases Auto Tariff Burden

European automakers are set to save 500-600 million euros monthly following the U.S. implementation of a trade deal with the EU. The agreement reduces tariffs on EU goods from 27.5% to 15%, retroactive to August, providing significant relief for the automotive sector despite some criticism.

In a significant relief for European automakers, the U.S. has implemented its side of a trade deal with the European Union, potentially saving the industry around 500-600 million euros each month. This move was announced by EU's top trade negotiator, Maros Sefcovic, on Thursday.

The deal, which establishes a 15% tariff on most EU goods, was published in the US Federal Register, instructing customs officials on the new charges. This reduction marks a notable decrease from the previous 27.5% tariff imposed under the Trump administration, offering a much-needed financial break to EU automakers.

Although the 15% tariff still exceeds pre-Trump levels averaging in the single digits, the agreement is hailed as the best available option following intense negotiations. Despite criticisms from business associations and some European Parliament members, Sefcovic, backed by most EU member states, believes lawmakers will endorse the deal.

(With inputs from agencies.)