The U.S. and EU have struck a trade deal that slashes threatened tariffs on European cars from 27.5% to 15%. President Trump called it a win for American consumers, but auto leaders across Europe are bracing for billions in added costs.

 

Key Points

• Tariff Relief: U.S. settles on a 15% flat tariff for EU goods, down from the initially proposed 30%.

• Industry Backlash: German VDA warns of multi-billion euro losses under new regime.

• Market Moves: Ferrari up 1%, but BMW, VW, and Mercedes all dip on tariff fallout.

With automakers already struggling to manage slim margins and global supply chain shifts, analysts say this “deal” may be just the start of longer-term reshuffling in where and how cars get built.

 

Catch the full breakdown on My Car Show Radio all day.

 

 

 

Tags: tariffs, auto industry, Trump trade deal, EU exports, German carmakers, VDA