European Union Tariff News and Tracker

EU-US Tariff Breakthrough: Automotive Exports Cut to 15%, Potential Relief for European Car Industry in 2025


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Listeners, welcome to the latest episode of the European Union Tariff News and Tracker. It’s November 14, 2025, and today we bring you the most pressing updates on transatlantic trade, US policy turbulence under President Trump, and what all this means for the European Union.

The big headline: a game-changing EU–US tariff deal is now in effect, directly impacting European automotive exports to the United States. According to Trans.INFO, European cars and parts, which had faced a punishing 27.5% US tariff, are now set to benefit from a significant reduction to 15%, retroactive from August 1, 2025. However, this comes with a major caveat: the tariff cut is conditional on the European Union introducing reciprocal measures on select US goods by the end of this summer. If Brussels moves swiftly with legislative work, the lower tariff could provide a lifeline for the European car industry just ahead of the crucial winter sales cycle.

This new deal covers a broad array of sectors and products. Exemptions from tariffs are now in place for aircraft and parts, certain chemicals, generic medicines, and cork, all of which are granted Most Favored Nation treatment. Yet, for European steel and aluminum, the pain continues—these sectors remain subject to a heavy 50% US tariff, a figure confirmed by recent updates on US trade expansion. This high tariff regime is part of President Trump’s broader second-term tariff policy, where the average applied US import tariff rate shot up from 2.5% to a record 27% between January and April, before settling at around 17.9% by September.

For actual customs procedures, freight markets have so far remained stable, but analysts warn the real test will come with post-summer demand. Importers and exporters on both sides are being urged to meticulously document their supply chains. Customs experts highlight that for EU products eligible for the new, lower tariffs, the documentation burden should not increase, but goods qualifying for zero tariffs under Most Favored Nation rules will face additional paperwork and longer clearance times. Stricter verification of product origin is now required—especially for goods containing parts from countries still facing high tariffs, like China.

The new US tariffs haven’t just shaken EU industries but have had a global ripple effect, with the White House also embroiled in trade disputes with Canada, Mexico, and other partners. The US has even imposed universal “reciprocal” tariffs under emergency powers, pushing tariff revenues to unprecedented levels and sparking intense debate in Washington and European capitals alike.

Listeners, tariff policy is now at the heart of transatlantic relations. The landscape remains volatile, with critical details still being negotiated, including alignment on the EU's carbon border adjustment mechanism and harmonization of safety standards.

Thanks for tuning in to the European Union Tariff News and Tracker. Don’t forget to subscribe for weekly insights on tariffs, trade, and EU–US economic relations. This has been a Quiet Please production, for more check out quiet please dot ai.

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European Union Tariff News and TrackerBy Inception Point Ai