President Trump’s tariff raised the auto industry when the administration announced for the first time in April. Trump’s proposal was that the imports of automatic parts and cars of the United States would witness a 25 percent duty in addition to any duties in advance that were already present. During the weekend, the Trump administration and the European Union announced a deal that is witnessing a decrease in customs tariffs to 15 percent, in exchange for investment obligations from the European Union countries.
Car news Reports The deal comes into effect on the first of August, although it does not cover the tariff that was previously announced by 50 percent on steel and aluminum. It follows similar deals concluded by the Trump administration with other entities. Trump announced last week A deal with Japan to get a 15 percent tariff on car importsWhile a few months ago, the administration worked 10 percent deal with the United KingdomUp to 100,000 cars. All of these definitions replace import duties of 2.5 percent previously on vehicle imports to the United States. The European Union has also agreed to eliminate the customs tariff for the vehicles that built the United States.
Automobile companies have lost billions of dollars in a collective manner due to the customs tariffs, and their duties Indeeding the auto market in the United States. The shares of Japanese car manufacturers increased on the news of the commercial deal last week, but as New York Times Reports, The stock prices decreased for European auto companies after a brief rise. This is nothing but partial relief for European auto builders, who were beaten by a difficult organizational environment in the European Union, and the need to invest in electricity with the slowdown of EV growth and the rise of Chinese car manufacturers.
All of this is also painful, perhaps paradoxes, American auto companies. The pressure groups in the United States said the three elders last week After announcing the Japan deal that Stelantis, Ford and GM are now “definitely in a non -favorable position.” They are still facing 25 percent on the cars that they build in Mexico and Canada, in addition to 25 percent on many of the automatic parts that come from those countries they use in cars that the United States collects. Add a 50 % tariff to steel and aluminum, and it is clear that a car in the United States is simply not a competitive advantage in this scene.
