In a joint statement, the two sides detailed plans that could bring down tariffs on auto imports from the European Union to the United States.
The U.S. and the European Union on Thursday announced fresh tariff details for the automobile and pharmaceutical industries, inching closer to formalizing the trade deal announced in July.
In a joint statement, the two sides detailed plans that could bring down tariffs on auto imports from the European Union to the United States, while keeping the door open to reduce levies on steel and aluminum by “ring-fencing” their respective domestic markets to protect them from overcapacity.
However, the White House’s promise to reduce tariffs on autos and pharmaceuticals depends on the EU formalizing legislation to eliminate tariffs on U.S. industrial goods, as well as extending “preferential market access” to some seafood and agricultural products from the United States.
The reduced 15% tariffs on auto imports, down from the 27.5% levy imposed by President Trump previously, would be applicable from the beginning of the month in which the EU proposes the aforesaid legislation, the statement noted.
According to a Bloomberg report, the U.S. imported new cars and auto parts worth $34.9 billion from Germany alone in 2024. It is not clear yet how the EU will fulfill its promise to invest $600 billion in the U.S., though.
Meanwhile, U.S. equities declined in Wednesday’s pre-market session. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.22%, while the Invesco QQQ Trust (QQQ) fell 0.16%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.
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