The United States has retroactively lowered tariffs on imported cars from the EU to 15% starting from August 1, consolidating the terms of the framework trade agreement reached by the two sides this summer. The Commerce Department and the Office of the Trade Representative published documents online on Wednesday detailing the adjustments, which involve reducing tariffs on many categories of goods.
Shares of Volkswagen, Porsche and Mercedes-Benz rose after the news. Porsche only sells imported cars in the United States and has been one of the companies hardest hit by previous U.S. tariffs. The stock once rose 3.8% in the Frankfurt market.
The adjustments include the implementation of tariff exemptions for industries such as aircraft, aircraft parts, generic drugs and their raw materials, as well as some metals and ores starting from September 1.
Most goods exported from the EU to the United States will be subject to new tariffs starting from September 1, but the reductions and exemptions for automobiles and parts depend on whether the EU introduces relevant legislation to reduce tariffs on US products. The EU took action on August 28, paving the way for the Trump administration to retroactively adjust auto tariffs.
Previously, such cars were subject to an additional 25% U.S. tariff on top of existing tariffs.
The United States stated in the announcement that the product list may be revised.