EU Pursues Retroactive U.S. Auto Tariff Relief in Trade Deal

The European Union will seek to ensure that lower U.S. tariffs on EU car exports are applied retroactively to August 1, according to the bloc’s trade chief on Thursday, as both sides detailed the framework trade deal reached in July. In a joint statement, the U.S. confirmed that 15% tariffs would apply to most EU imports, while the EU pledged to cut tariffs on U.S. industrial goods and expand preferential access for American seafood and farm products. Washington also agreed to reduce the current 27.5% tariff on European cars and parts—seen as a major burden for EU automakers—once Brussels enacts the necessary legislation. Tariff relief will begin the month that legislation takes effect. From September 1, the U.S. will limit duties on EU aircraft, generic drugs, chemicals, and raw materials to pre-existing Most Favored Nation rates below 15%. However, wine and spirits were excluded, though both sides said other sectors could be considered later.