U.S. Implements New Tariff Deal with EU: Relief for Automakers
The U.S. administration has officially implemented a trade agreement with the EU, setting a 15% tariff on EU autos and parts from August 1. The deal includes exemptions for specific products and aims to ease trade tensions. The announcement sparked positive reactions in the European auto industry.
The Trump administration announced on Wednesday that it is officially implementing a trade agreement with the European Union, confirming a 15% duty rate on EU cars and auto parts effective from August 1. This formalization appeases European automakers who had been anxiously awaiting confirmation for weeks.
The Federal Register notice outlines that the U.S. has revised its tariff schedule per a framework agreement reached in July. This revision reduced tariffs on various EU imports, including vehicles. The notice also specifies exemptions for natural resources like cork, aircraft and parts, as well as generic pharmaceuticals.
Relaxation of tariffs sparked a positive response in the European auto industry, with stock prices for companies like Volkswagen, Porsche, BMW, and Mercedes-Benz seeing gains. Oliver Blume, CEO of Volkswagen, noted that while talks are ongoing, the announcement marks a significant step toward eased trade tensions.
(With inputs from agencies.)
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