U.S. Implements Revised Auto Tariffs with EU Amid Exemptions

The Trump administration formalized a trade agreement with the EU, imposing a 15% duty on auto and auto parts imports from August 1. The deal includes exemptions for certain pharmaceutical compounds, aircraft, and natural resources. This amendment adjusts the U.S. tariff schedule, reflecting changes made in late July.

The Trump administration announced a significant update on Wednesday concerning the U.S. trade agreement with the European Union. A new Federal Register notice confirmed that auto and auto parts imports would face a 15% duty starting August 1, with crucial exemptions in place for certain goods, including some pharmaceutical compounds, all aircraft and parts, and specific natural resources like cork.

The U.S. Department of Commerce and the Office of the U.S. Trade Representative have amended the nation's tariff schedule, following the Framework Agreement reached with the EU in late July. This agreement reduces former President Donald Trump's tariffs to 15% on the bulk of EU imports, a significant move that primarily affects the automobile sector.

Despite the announcement, European automakers have been anticipating this formal notice as the duty rate adjustment was made retroactive to August 1. Key exemptions include natural resources not available in the U.S. and generic pharmaceuticals, offering substantial relief to various industries and ensuring continued access to essential goods.

(With inputs from agencies.)