In a statement, the European Automobile Manufacturers Association (ACEA) said it “supports de-escalation,” as director general Sigrid de Vries said, “the agreement takes an important step towards easing the intense uncertainty surrounding transatlantic trade relations in recent months, and ACEA welcomes this development in principle.

“Nevertheless, the US will retain higher tariffs on automobiles and automotive parts, and this will continue to have a negative impact not just for industry in the EU but also in the US,” she said.

US President Donald Trump and European Commission President Ursula von der Leyen clinched a customs agreement in Scotland yesterday, whereby European automotive products exported to the US will be taxed at 15% rather than the 30% Trump had earlier threatened to impose from Aug 1 in the absence of an accord.

The automotive industry is one of those most affected by the Trump tariffs, both for the export of cars, particularly German ones, to the US, and for the manufacturing of cars in North America.

The ACEA said it would have to examine closely the details of the agreement as “at this stage, many elements of the agreement still need to be clarified.

“ACEA will closely examine the details as they become available and assess the implications for Europe’s vehicle manufacturing.

“Looking forward, the EU and the US should focus on reducing obstacles to vital transatlantic automotive trade, paving the way for stronger economic ties and shared prosperity,” De Vries added.