US lowers tariff on EU autos, implementing terms of deal

US lowers tariff on EU autos, implementing terms of deal

The shift brings down the tariff on EU auto imports to 15%, conditional on the bloc reducing its tariffs on US products.

BMW
The US-EU trade pact also detailed exemptions for aircraft, parts, and pharmaceuticals from Donald Trump’s additional trade tariffs. (AP pic)
WASHINGTON:
The US moved Wednesday to lower tariffs on auto imports from the European Union – retroactive to Aug 1 – implementing the terms of a trade pact that both sides earlier unveiled.

The shift, detailed in a document filed to the federal register by the commerce department and US trade representative’s office, brings the US tariff on EU autos to 15%.

This is significantly down from the 27.5% faced after Washington slapped an additional 25% duty on imported autos this year.

The relief for autos and parts, however, was conditioned upon the bloc introducing legislation to reduce its own tariffs on US products – which it has done.

US President Donald Trump and EU commission president Ursula von der Leyen clinched a framework accord in July for most EU exports to face a 15% US levy.

Both sides released further details of the agreement in August.

The document filed Wednesday also outlined various exemptions for sectors such as aircraft, aircraft parts and generic pharmaceuticals from Trump’s additional tariffs.

These would be effective from Sept 1, and the EU earlier said that both sides have agreed to work on expanding this list further.

Trump slapped a 10% “reciprocal” tariff on imports from almost all trading partners in April to address what Washington deemed unfair trade practices.

In August, he raised this to various higher levels for dozens of economies, including the European Union.

But the EU secured additional reprieves under its deal with Washington. Many of its goods face a maximum 15% tariff rather than having the new rate pile atop existing levies.

These sweeping “reciprocal” duties did not cover sectors like automobiles that were separately singled out to face higher levies, and the deal also provided relief in that respect.

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