In order for the United States and the European Union to finalize a broader trade agreement, the US must first implement the agreed reduction of the tariff rate on imports of cars produced in the Union, Germany emphasizes.
At the end of July, the US and the EU reached a trade agreement under which a 15 percent tariff will be applied to imports of most European goods into the US, but numerous key details, including tariffs on imports of pharmaceutical products and cars, are still awaiting resolution.
Since US President Donald Trump announced higher tariffs in April, imports of cars produced in the European Union have been subject to a tariff rate of 27.5 percent. Although a framework agreement has been reached, European manufacturers fear a sudden reversal, as Trump has yet to issue an executive order to lower automotive tariffs.
The German government has warned that an urgent reduction in automotive tariffs is necessary to finalize the trade agreement.
– Specifically, automotive tariffs must be urgently reduced, as agreed. We are aware of the significant burden on the export-oriented economy. … Our role is to continue to fully support the European Commission in this process – said a spokesperson for the German government at a press conference.
The United States is the main export market for the European Union’s automotive industry, according to data published by Eurostat in July, accounting for as much as one-fifth of the total added value of European automotive production for foreign markets in 2023.
