On September 24th, the U.S. government officially announced that, starting August 1st, they would be adding a 15% tax on cars and auto parts coming in from the European Union. This move puts into action the trade deal made between the U.S. and the EU.
Tilt And Slide Aluminum Windows & Inward Opening Side-hung Aluminum Windows
On Wednesday, September 24th, the U.S. announced it will cut tariffs on cars from the European Union down to 15%. This change will be applied retroactively starting August 1st. The move helps strengthen the trade deal both sides agreed on earlier this summer. Back in July, the U.S. and EU reached a framework agreement, and since August, the U.S. has been charging a 15% tax on many European imports, including cars, medicines, chips, and lumber.
The U.S. Department of Commerce and the Office of the U.S. Trade Representative (USTR) shared a new update in the Federal Register on Wednesday. It includes changes like lowering tariffs on various goods. The update also grants exemptions starting September 1st for certain industries, such as aircraft and parts, basic medicines and their raw materials, and some metals and ores.
Tilt And Slide Aluminum Windows & Inward Opening Side-hung Aluminum Windows
The U.S. government mentioned that the list of products might change later on. Before the Trump administration officially lowered tariffs, the European auto industry had to deal with an extra 25% tariff on top of the regular 15%.
Starting March 11th, President Trump hit steel and aluminum with a 25% tariff. Then, on April 3rd, tariffs were added to cars, followed by automotive parts on May 3rd. On June 4th, the U.S. doubled the metal tariffs to 50%. The auto industry has always been a big part of U.S.-EU trade talks, and it's especially important for the EU economy—Germany, in particular, relies heavily on it as Europe's biggest economy.
Tilt And Slide Aluminum Windows & Inward Opening Side-hung Aluminum Windows
Under the earlier U.S.-EU trade deal, the European Union agreed to drop tariffs on all U.S.-made industrial goods and offer easier access for U.S. seafood and farm products. They also plan to buy $750 billion worth of U.S. LNG, oil, and nuclear energy, plus an extra $40 billion in U.S. AI chips. By 2028, EU companies are expected to invest another $600 billion in U.S. key industries.
Many people in Europe think the EU gave up too much in the trade deal, especially because the agreed 15% tariff rate is much higher than what was typical before. Before Trump started his second term, the U.S. usually set tariffs on EU goods at around 4.8%. Still, Ursula von der Leyen, the head of the European Commission, says that 15% is actually the best deal Europe could get.