2025.08.2200:49:27UTC+00EU Pursues Retroactive U.S. Auto Tariff Relief in Trade Deal

The European Union is aiming to ensure that the reduced U.S. tariffs on EU car exports will be retroactively applied starting from August 1, as announced by the bloc's trade chief on Thursday. This follows the outline of a framework trade agreement reached in July. According to a joint announcement, the U.S. confirmed the implementation of a 15% tariff on most EU imports. In return, the EU committed to lowering tariffs on U.S. industrial goods and enhancing preferential access for American seafood and agricultural products. Additionally, Washington has agreed to decrease the current 27.5% tariff on European cars and parts, which has been a significant challenge for EU automakers. This reduction will happen once the necessary legislation is passed in Brussels, and the tariff relief will commence in the month that the legislation is enacted. Starting September 1, the U.S. will restrict duties on EU aircraft, generic drugs, chemicals, and raw materials, aligning them with pre-existing Most Favored Nation rates, which are set below 15%. Notably, wine and spirits were not included in this agreement; however, both parties indicated that other sectors might be included at a later date.