Car duties tied to EU legislation
The United States will continue imposing a 27.5% tariff on vehicles from Europe until the European Union introduces laws reducing trade barriers on American exports. Under a new framework deal, the tariff will drop to 15% once Brussels presents the required legislation.
Deal announced after high-level talks
The agreement was revealed on 27 July following talks between Donald Trump and European Commission president Ursula von der Leyen at Trump’s golf resort in Turnberry, Scotland. As part of the arrangement, the EU committed to phasing out tariffs on US industrial products and widening access for American farm and seafood goods. In exchange, Washington signaled its readiness to reduce duties on European imports, including cars, medicines and technology components.
Implementation depends on EU progress
US officials indicated that tariff relief could come within weeks, but stressed that reductions hinge on the EU’s legislative process. According to the joint statement, the current 27.5% duty will remain until Brussels tables a proposal aligned with the agreement, with cuts applying “from the first day of the same month” the legislation is introduced.
European leaders and industries divided
Political reactions in Europe were cautious. French prime minister François Bayrou criticized the outcome as a moment of “submission,” while Spain’s leader Pedro Sánchez said the deal offered little to his country. Industry responses were also mixed: Spain’s food and beverage federation said avoiding open conflict was positive but objected to penalties on exports, while the US spirits industry warned that a 15% duty on European alcohol could erase over $1bn in sales and put 12,000 American jobs at risk.
