The United States and the European Union are driving the implementation of its trading agreement. Both sides have now published details – according to this, the US tariffs are to be reduced to car imports to 15 percent.
In a written declaration, the EU and the United States agreed on agreements to settle their trade conflict. The explanation states that the United States will retrieve its car tariffs retrospectively at the beginning of the month as soon as the EU initiates the legislative process for import eases in favor of certain US products. For example, tariffs are to be fully abolished to US industrial goods and barriers for importing certain foods.
According to the EU, the US tariffs could be reduced to car imports from Germany and other EU countries to 15 percent in retrospect. EU trade commissioner Maros Sefcovic announced in Brussels that the EU would meet the necessary requirements. “I think these are welcome news for the auto industry,” he said. Most recently, the duty rate for cars introduced from the EU to the USA was 27.5 percent.
Investments in the USA promised
According to the unification of US President Donald Trump and EU Commission President Ursula von der Leyen, the carmakers had so far waited in vain for hoped-for re-cutting on July 27, since their vehicles initially did not fell under the regulations for the agreed new basic customs set of 15 percent. According to the explanation, this should now be changed.
In the document, numerous other already known agreements between the EU and the USA are recorded. The EU assures Trump to buy US energy worth $ 750 billion until the end of its term of office. According to previous information from Leyen, liquid gas (LNG), oil and nuclear fuel from the United States should fill the gaps that will arise after the planned complete waiver of Russian gas and oil. In addition, the EU Trump promises to invest another $ 600 billion in the United States in the coming years.
Explanation not legally binding
As Sefcovic said, the EU initially failed to include wine and spirits in the new trade agreement. However, the doors are not closed forever. Sefcovic adds that an agreement in this area is not easy. In addition, the digital sector was held out of the current trade talks.
The joint explanation is not legally binding. The EU has to fear that Trump will increase tariffs again unilaterally if appointments are not implemented. The United States did not respond to the EU proposal to completely do without tariffs on industrial goods.
