Deal with Trump: US cars to enter the EU duty-free soon

The EU currently levies a duty of ten percent on car imports from the USA. "We are prepared to go to zero," said the official. However, the prerequisite is that the United States keeps to its part of the agreement and reduces the US tariffs currently due on car imports from the EU from the current 27.5 percent to 15 percent.

For the European car industry, the EU's commitment means that it will have to expect stronger competition from US manufacturers in future. It will also have to live with the new 15 percent tariff in future. Before Trump took office, the tariff rate was still 2.5 percent.

EU cars will be subject to a 15 percent tariff

EU Commission President Ursula von der Leyen explains that the EU nevertheless agreed to the trade deal by pointing out, among other things, that without the agreement there would have been a threat of tariffs of 30 percent from August 1. The EU also points out that tariffs of 27.5% are currently being imposed on imports of European cars into the USA due to customs decisions made in the first months of Trump's second term.

The deal to defuse the months-long tariff conflict was agreed on Sunday at a meeting between EU Commission President Ursula von der Leyen and US President Trump at the US President's golf hotel in Turnberry, Scotland. It also provides for the EU to buy significantly more energy from the US in future and increase investment there.

Only a limited number of goods will not be subject to import duties in future. According to EU Commission President Ursula von der Leyen, these include, for example, aircraft, certain chemicals, agricultural products and critical raw materials.

In an initial reaction, the Federation of German Industries (BDI) said that the agreement was an inadequate compromise that sent a fatal signal to the closely intertwined economies on both sides of the Atlantic. A tariff rate of 15 percent would also have an immense negative impact on the export-oriented German industry.