US Lowers Tariffs on EU Autos to 15%
Move Cements the Trade Deal Terms
[Stay on top of transportation news: .]
The U.S. lowered tariffs on auto imports from the European Union to 15% retroactive to Aug. 1, cementing the terms of the framework trade agreement the two sides struck this summer.
The Department of Commerce and Office of the U.S. Trade Representative published a document online on Sept. 24 detailing the changes, reducing duties on a range of goods.
Shares of German carmakers Volkswagen AG, Porsche AG and Mercedes-Benz Group AG gained on the news. Porsche, which is among the hardest hit by the U.S. tariffs as it sells only imports there, rose as much as 3.8% in Frankfurt.
The changes include a list of exemptions for sectors including aircraft, aircraft parts and generic pharmaceutical drugs plus ingredients, as well as certain metals and ores, effective Sept. 1.
Mark Hill and Danielle Villegas of PCS Software discuss their AI engine, Cortex, designed specifically to level the playing field for midsized carriers. Tune in above or by going to .ÌýÌý
Most of the new rates take effect for EU goods shipped starting Sept. 1, but the relief for automobiles and parts was contingent on the EU introducing legislation to lower tariffs on American goods. The bloc followed through with that action on Aug. 28, paving the way for the Trump administration to backdate the new auto charge.
Previously, those vehicles faced a 25% U.S. duty on top of existing levies.
The U.S. said in its notice that the list of products may yet be amended. The move followed an executive order President Donald Trump signed earlier this month that smoothed the process for his administration to adjust tariff rates for imports from economies with which he struck trade pacts.
Want more news? Listen to today's daily briefing belowÌýor go here for more info:
