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USA reduces car tariffs to 15%: trade alliance between EU and USA strengthens!
The US retroactively cuts tariffs on European cars to 15%, improving trade relations with the EU and promoting competition.
USA reduces car tariffs to 15%: trade alliance between EU and USA strengthens!
What a turning point for transatlantic trade relations: The USA has decided to reduce tariffs on car imports from Europe to 15 percent retroactively to August 1, 2025. This measure could significantly stimulate business between the USA and the EU. By reducing tariffs, which previously stood at 27.5 percent, Washington is showing welcome signs of easing in an otherwise tense trade environment.
Brussels has worked hard in recent months to make this agreement possible. According to Tagesschau, hundreds of EU products are already exempt from tariffs, including aircraft, aircraft parts and various raw materials. The benefits for companies like Airbus could be huge, while German car brands including Volkswagen, BMW and Mercedes-Benz will offer more competitive prices in the US market.
A new chapter in retail
EU Trade Commissioner Maros Šefčovič emphasizes that these tariff cuts are intended not only to strengthen the automotive sector, but also to promote cooperation between the two sides. The EU also plans to make significant investments of $600 billion by 2028 in strategically important US sectors, including liquefied natural gas and artificial intelligence.
The EU's trade mandate also includes the elimination of tariffs on American manufactured goods and preferential market access for US agricultural products, which will be beneficial for many companies in the sector. It-Boltwise reports that shares of major automobile manufacturers in Germany have already experienced a boost due to this news. For example, Porsche shares rose 2.2 percent, while BMW and Mercedes-Benz also rose.
A historically significant agreement
These developments are the result of a months-long struggle for better trading conditions between the US and the EU. According to europa.eu, the new trade dynamic is the result of agreements reached between President Ursula von der Leyen and the US President in July. The transatlantic partnership, which has already benefited from this, could reach a new dimension through these agreements, with annual trade in goods and services worth 1.6 trillion euros.
The coming months will be crucial to see how trade relations develop further. Clear agreements and their implementation are now required to guarantee sustainable success. The fact that Washington is now implementing the 15 percent tariff cap for European cars is the first step towards this. Competition will intensify and it will be exciting to see how companies will exploit the new opportunities.