ECG — 2025-07-28
News from ECG
The European Commission has issued an official statement confirming the new trade deal. However, the U.S. administration has yet to release full details.
According to the Commission’s statement, a single 15% tariff will apply to the vast majority of EU goods, including cars. Commission President Ursula von der Leyen emphasized that the 15% rate is a clear ceiling, stating that it is “all-inclusive” with no additional tariffs or stacking permitted.
What does this mean for the automotive sector?
A 15% import tax will now apply to most EU goods exported to the U.S., including vehicles.
This new tariff replaces all existing duties. It overrides:
The 20% “Reciprocal Tariffs” introduced in April,
The previous standard 10% import duty on EU vehicles,
Any duties under Section 232 for EU-origin goods.
The 15% is intended to be comprehensive and exclusive – no other U.S. tariffs will apply on top of it.
Why is the date significant?
The timing of the announcement is critical. It comes just days before the 1 August deadline, after which EU goods were expected to face nearly 30% import duties. The new agreement effectively halves the anticipated tariff rate. However, it is important to note that prior to recent trade tensions, the standard U.S. import duty on cars was just 2.5%.
What does the U.S. gain from the deal?
In return, the EU has committed to USD 600 billion in investment in U.S.-based production. This aligns with the U.S. administration’s goals of encouraging foreign investment and domestic job creation.
Other Trade Agreements
Japan: On 23 July, the U.S. announced a similar agreement with Japan, involving a USD 550 billion investment in the U.S. In exchange, a 15% tariff will apply to most Japanese exports, including cars. Japan will also begin recognizing U.S. automotive standards, allowing American vehicles to be sold more easily in Japan.
United Kingdom: Under the Economic Prosperity Deal announced on 8 May, the U.S. will allow the import of up to 100,000 UK-manufactured vehicles annually, at a flat 10% tariff.
We will continue to monitor updates as more details are released by U.S. authorities.
ECG Members can read the full update here.