US and EU Formalize 15% Tariff Deal, Auto Industry Exemptions Remain

The U.S. and European Union have finalized a trade agreement imposing 15% tariffs on most EU exports to the U.S., though the auto sector continues to face elevated levies. The deal, reached after tense negotiations last month, covers strategic industries including pharmaceuticals, semiconductors, and lumber.

Auto imports remain a sticking point. The 15% rate for EU vehicles hinges on Brussels reducing tariffs on American industrial goods, seafood, and agricultural products. Current U.S. duties on EU autos stand at 27.5%, significantly higher than the new blanket rate.

This calibrated approach reflects ongoing tensions in transatlantic trade relations. While the agreement brings clarity to most sectors, the automotive industry's future remains contingent on reciprocal concessions from the EU bloc.