The European Union and the United States have formalized an agreement on Thursday to limit tariffs on European products, including cars, 15 %. This measure will enter into force when Brussels approves the necessary legislation to reduce their own tariffs on US goods. The pact took place last July in Scotland, during the meeting between Ursula von der Leyen and Trump, and has been ratified by a joint statement between the European Commission and the White House.
According to the agreed text, the United States will apply a maximum 15% tariff to products such as cars, semiconductors and pharmaceutical products. However, in the case of vehicles, the reduction will only apply if the EU fulfills its part. The European Commissioner of Commerce, Maros Sefcovic, said that the legislative proposal will be presented this month and, if so, the measure could be applied with retroactive effect since August 1.
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A basic tariff set at 15%
The third point of The joint statement It states that “the United States intends to promptly guarantee that the tariff rate, composed of the NMF tariff and the tax tariff in accordance with section 232 of the Commercial Expansion Law of 1962, applied to the original goods of the European Union subject to the measures of section 232 on pharmaceutical products, semiconductors and wood do not exceed 15%”. In addition, it specifies that additional tariffs will not be imposed on EU cars and auto parts with NMF tariff of 15 % or more, and that a combined 15 % rate will be maintained in cases of lower tariff.
The agreement also includes bilateral cooperation to deal with excess capacity in sectors such as steel and aluminum, although without concrete details. According to the text, “the European Union and the United States intend to consider the possibility of cooperating to protect their respective internal markets from excess capacity, at the same time guaranteeing the safety of supply chains between them, even through solutions for tariff contingents.”
Wine and liquors are not saved
Among the additional commitments, Brussels has been willing to eliminate tariffs to all US industrial goods and offer preferential access to their market for certain agricultural and sea products. In parallel, the EU plans to increase its purchases of natural gas and US military equipment in the coming years, thus reinforcing its strategic alliance.
Despite the advance, sectors such as wine and European spirits have not been exempt from the 15%tariff, which has generated some frustration in the European part. However, SEFCOVIC said that negotiations will remain open to try to reduce these levies in future rounds of dialogue with Washington.