Washington links tariff cut to EU legislation
The United States will not lower its heavy duties on European cars until the European Union introduces new laws to reduce tariffs on American exports. A framework agreement outlines that Washington’s current 27.5% levy on EU-made vehicles and parts will only fall to 15% once Brussels moves forward with its own commitments.
Details of the trade deal
The accord was announced on 27 July by Donald Trump and European Commission president Ursula von der Leyen after talks at Trump’s Turnberry resort in Scotland. Under the deal, the EU has promised to scrap tariffs on all US industrial goods and widen access for American seafood and agricultural exports. In return, the US agreed in principle to lower tariffs on a range of EU goods, including cars, pharmaceuticals and semiconductors.
Timing depends on Brussels
US officials said the reduction could happen within weeks, provided the EU introduces the required legislation. According to the joint statement, American tariffs on European vehicles will remain in place until that step is taken. The deal specifies that duties will drop “from the first day of the same month” in which the EU tables a legislative proposal aligned with the agreement.
European concerns and industry response
Reactions in Europe were cautious. France’s prime minister, François Bayrou, described the accord as a “dark day”, while Spain’s Pedro Sánchez said it offered limited benefits to his country’s economy. Business groups also expressed mixed views: Spanish food exporters welcomed progress but criticised continued trade penalties, while the US distilled spirits industry warned that a 15% tariff on European alcohol could cost $1bn in retail sales and 12,000 American jobs.
