U.S.–EU trade Deal: What About Auto Tariffs?
For now, EU-built cars still face a 27.5% U.S. tariff. Under the written framework released August 21, Washington will drop that to 15% once Brussels formally introduces legislation to cut EU duties on a slate of U.S. industrial and farm goods. The auto cut would take effect on the first day of the month in which the EU proposal is introduced; the EU trade chief says the Commission intends to table it before month-end, making the 15% rate retroactive to August 1, 2025, if they do. Most other EU goods move to a 15% U.S. tariff with limited exemptions.
Bottom line: 27.5% today; 15% if/when the EU moves—backdated to Aug. 1, 2025, if the proposal lands this month.
