FX.co ★ U.S. Reduces European Car Duties

The United States is set to reduce tariffs on European automobiles to 15% from 27.5%, effective retroactively from August 1, 2025, according to a government filing released on Wednesday. This decision fulfills a commitment made under the US-EU trade agreement announced in July. The reduction in tariffs comes after the European Commission enacted legislation aimed at decreasing duties on a variety of U.S. products—a move that the U.S. had anticipated. The notification, scheduled for official publication in the Federal Register on Thursday, also outlines exemptions for European aircraft and parts, generic pharmaceuticals, and specific natural resources, thereby reversing policies from the Trump administration that had caused tensions in transatlantic trade relations.