Washington ties tariff cuts to EU legislation
The United States has confirmed it will keep its 27.5% tariff on European cars in place until the European Union formally introduces legislation to lower duties on American goods. Under the new trade framework released Thursday, the US will reduce its levy on EU vehicles and parts to 15% once Brussels takes the required legislative step.
Trade deal sealed in Scotland
The arrangement was announced on 27 July after Donald Trump and European Commission president Ursula von der Leyen met at Trump’s Turnberry golf course in Scotland. The framework sets out reciprocal promises: the EU committed to abolishing tariffs on all US industrial products and expanding access to American seafood and farm goods, while Washington agreed to cap tariffs at 15% on most European imports, including cars, pharmaceuticals, semiconductors, and timber.
Implementation hinges on EU action
US officials stressed that relief for European automakers could come quickly, but only once the EU makes its move. “Once the legislation is introduced – not passed, simply introduced – we can proceed with tariff reductions,” a senior official said. The joint declaration specifies that duties on EU cars will fall “from the first day of the month in which the EU’s legislative proposal is tabled,” provided it is consistent with the agreement and ultimately approved by national parliaments.
Political unease in Europe
Some European leaders reacted warily. French prime minister François Bayrou called the deal a moment of submission, while Spain’s prime minister Pedro Sánchez said he would back the agreement “without enthusiasm,” noting that Spain’s limited trade exposure to the US would blunt any economic benefits.
Mixed reactions from industries
The response among industry groups has been divided. Spain’s Food and Beverage Industries Federation said avoiding a trade war was positive but objected to continued penalties on exports. Meanwhile, the US Distilled Spirits Council criticized the deal, warning that maintaining 15% tariffs on European spirits could wipe out $1bn in retail sales and up to 12,000 jobs. “We had hoped for permanent tariff-free spirits trade on both sides of the Atlantic,” said its president, Chris Swonger.
