In a significant shift for transatlantic commerce, the United States has formally reduced its tariff on automobiles imported from the European Union. The new rate of 15%, which applies retroactively to shipments from August 1, finalizes a trade framework agreed upon earlier this year. Official documentation outlining the adjustment was published by US trade authorities this week.
The announcement prompted an immediate positive reaction in European markets, particularly for major German automakers. Shares of Volkswagen, Porsche, and Mercedes-Benz all experienced gains. Porsche, which relies exclusively on exports to the US market, saw its stock rise by as much as 3.8% following the news, as it stands to benefit considerably from the lower duty.
Beyond automobiles, the updated policy includes exemptions for a variety of other sectors. These include aircraft, aircraft parts, generic pharmaceuticals, and specific metals and ores, with these changes effective from September 1. The tariff relief for cars and auto parts, however, was conditional upon the EU taking corresponding action.
This condition was met on August 28, when the European bloc introduced legislation to lower its own tariffs on American goods. This reciprocal step allowed the Trump administration to backdate the new auto tariff. The previous rate for these vehicles was 25%, on top of standard import levies. US officials noted that the list of affected products remains subject to future amendments.