Brussels expects Trump to confirm he will impose 15% tariffs on European cars.

The countdown to tariff negotiations between the European Union and the United States continues. The deadline is now August 8th, when White House President Donald Trump announced last Friday that the tariffs agreed upon with Brussels would begin to be applied. Meanwhile, the European Commission expects Washington to confirm that a lower-than-expected tariff on European vehicle imports will be applied: 15% compared to the initially planned 27.5%.
Last Friday, the Republican signed an executive order confirming the agreement sealed in Scotland with European Commission President Ursula von der Leyen. He confirmed that a maximum tariff of 15% would be applied to imports of European products , although there would be certain exceptions for aeronautical products, semiconductors, and pharmaceuticals, to which a reciprocal zero tariff would apply.
Thus, with Trump setting a new horizon of August 8th as the date on which the 15% tariff will take effect, European negotiating teams are continuing their talks with the US government to agree on the exceptions. They are working against the clock and are concerned about confirming and definitively formalizing lower tariffs for the automotive sector, according to Bloomberg , which would primarily bring relief to Germany.
The executive order issued by Trump last Friday only affects the so-called reciprocal tariffs, the 20% tariffs the Republican announced generically on all products imported from the EU, which would be reduced to 15%. But it says nothing about the agreed-upon exceptions.
In addition to these "reciprocal" tariffs, the US government had announced tariffs of 27.5% on EU vehicles and automotive components. That's why it's so important for Brussels to see the reduction to 15% reflected in an agreement that establishes the tariff reduction on European cars.
Furthermore, Trump imposed tariffs on steel and aluminum, which, according to the highest-level political agreement, will ultimately remain at 50%. In any case, Brussels is working to reach an agreement that would allow certain volumes of these metal exports to have a lower rate than that 50% . This measure, in any case, seeks to avoid the repercussions of Chinese overproduction.
The joint declaration, which the EU and US have yet to sign, will set out the details of the agreement reached between Von der Leyen and Trump, although the legal format of such commitments depends on Washington. The text, EU sources explained, is not legally binding but rather a commitment between both parties.
Following the meeting in Scotland, the current situation required Brussels and Washington to close the deal before August 1, the expiration of the trade truce granted by Trump. The White House executive order last Friday gave the negotiating teams a few more days, until August 8, to agree on the agreement. The zero tariff on the aeronautical, pharmaceutical, and semiconductor sectors remains to be confirmed . A 15% tariff will be applied to automobiles, and the amount of tariffs that would constitute an exception for steel and aluminum.
eleconomista