EU to droop US countermeasures regardless of lack of auto tariff aid

The European Fee will droop countermeasures on €93 billion price of US items on Tuesday regardless of Washington’s failure to observe by means of on its pledge to slash duties on EU automobile exports, Brussels stated on Monday.

The transfer comes per week after the world’s largest buying and selling companions clinched a much-anticipated “framework deal”, which either side stated would see most EU exporters, together with automobile producers, hit with a 15% flat US levy starting this Friday – the day after the EU’s retaliatory tariffs had been initially set to enter into power.

On Thursday, Donald Trump issued an govt order confirming the introduction of the flat 15% levy. Nonetheless, the US president has but to formally decrease the levy on EU vehicles, that are nonetheless topic to a particular 27.5% tariff. Most EU exports to America at the moment face a ten% minimal responsibility.

The discount of US automobile duties is essential for Europe’s long-suffering auto business, which is struggling to maintain tempo with more and more fierce competitors from Chinese language electrical car producers. The US accounts for greater than a fifth of the EU’s automobile exports, with €40 billion price of autos shipped to America in 2024.

“On 31 July 2025, the US issued an govt order confirming step one within the implementation of the settlement, particularly the introduction on 8 August of a single, all-inclusive 15% tariff on items from the EU,” Olof Gill, EU commerce Fee spokesperson, stated on Monday.

“The opposite parts of the 27 July settlement at the moment are to be applied by the US. This consists of the dedication to lower its Part 232 tariffs on vehicles and automobile components imported from the EU to a 15% ceiling fee, in addition to the particular remedy agreed for sure strategic merchandise (e.g. plane and plane components),” he added.

“With these targets in thoughts, the Fee will take the required steps to droop by six months the EU’s countermeasures towards the US, which had been resulting from enter into power on 7 August.”

The proposed suspension comes amid deep disagreements between Washington and Brussels over the exact particulars of final month’s deal, which falls nicely wanting a standard commerce settlement.

Along with the pledged automobile tariff discount, the Fee has claimed the deal will see either side fully forgo duties on one another’s plane, semiconductor tools, essential uncooked supplies, and “sure” chemical compounds, generics, and agricultural merchandise.

A White Home “truth sheet” on the deal additionally states that the agreed 15% tariff fee applies to vehicles however doesn’t state that Washington will supply the EU any further tariff aid.

Including to the confusion, the US officers have claimed that the EU’s digital rules and companies taxes stay “on the desk” – a declare fiercely denied by Brussels.

Furthermore, the US claims its levies on metal and aluminium – that are additionally topic to a particular 50% levy – usually are not coated by the settlement. The Fee, nevertheless, says the US has agreed to a ‘quota system’ through which some EU metals will probably be taxed beneath 50%.

Along with sector-specific duties on metals and vehicles, Trump has introduced particular so-called ‘Part 232’ probes, which may see additional tariffs imposed on particular items on nationwide safety grounds.

The EU and the US each say that prescription drugs and semiconductors, that are every topic to Part 232 investigations, are coated by the 15% levy.

The Fee’s proposal to droop the countermeasures is overwhelmingly prone to cross, given {that a} ‘certified majority’ of EU nations, or 15 nations representing 65% of the bloc’s inhabitants, is required to dam it.

The measures, which mix two earlier lists and have by no means been imposed, goal a variety of American merchandise, together with soybeans, motorbikes, vehicles, plane, equipment, and diamonds.

They had been designed in response to Trump’s sweeping tariffs, which have upended world provide chains at the moment affecting €370 billion price of EU items, or 70% of the bloc’s exports to America.

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