The chief trade negotiator for the European Union announced on Thursday that European automakers would benefit from monthly savings ranging from €500 million to €600 million following the entry into force of the trade agreement with the United States.
Trade Commissioner Maroš Šefčovič explained that the agreement, which imposed a 15% tariff on most EU exports to the US market, became effective retroactively as of August 1. He confirmed that this change significantly eases the burdens on the automotive sector, which previously faced tariffs as high as 27.5% imposed by the Trump administration.
Šefčovič noted that the reinstatement of the tariffs would provide an important financial relief for European car manufacturers, which have suffered from trade pressures for years. He added that this agreement represents "the best possible deal" after difficult negotiations with the US administration, where the alternative was higher tariffs that former President Donald Trump threatened to impose.
Although the new tariff of 15% is still high compared to the levels prior to Trump's administration, it represents a positive step that enhances the competitiveness of EU exports. Companies are expected to receive direct financial compensations for the period covered by the agreement, which means additional cash flows of hundreds of millions of euros monthly.
The agreement has garnered wide support from member states within the EU, while the European Commission is confident that European legislators will approve it after reviewing the details. Despite criticism from some business associations and members of the European Parliament who believe that the tariffs are still too high, Brussels considers the agreement a diplomatic and trade achievement that protects vital industries in the region.
This development comes at a time when the European Union is seeking to strengthen its economic and trade position in the face of increasing global pressures, especially in the automotive sector, which is one of the main pillars of the European economy.
