Tariff cut tied to EU legislation
The United States will keep its 27.5% tariff on European cars in place until the European Union formally introduces legislation to lower barriers on American exports. According to a new framework agreement, Washington will reduce the levy to 15% only after Brussels takes legislative action.
Agreement unveiled in Scotland
The deal was announced on 27 July by Donald Trump and European Commission president Ursula von der Leyen during a meeting at Trump’s Turnberry golf resort in Scotland. The accord commits the EU to remove tariffs on US industrial goods and expand access for American agricultural and seafood products. In return, the US agreed in principle to lower tariffs on a broad range of European goods, including cars, pharmaceuticals and semiconductors.
Implementation dependent on EU action
US officials said tariff reductions could be implemented quickly once the EU tables legislation. The joint statement makes clear, however, that the current 27.5% rate will remain until such proposals are introduced. It specifies that the tariff cut will take effect “from the first day of the same month” in which Brussels puts forward legislation in line with the agreement.
European leaders and industry react
European leaders voiced reservations about the accord. France’s prime minister, François Bayrou, described the outcome as a “dark day,” while Spain’s prime minister, Pedro Sánchez, said the deal would bring little benefit to his country’s economy. Industry groups offered mixed reactions: Spain’s food exporters stressed that “an agreement is better than a trade war” but opposed penalties on their products, while the US distilled spirits sector warned that a 15% duty on European alcohol could cost over $1bn in sales and threaten 12,000 American jobs.
