The European Union’s major automaker trade group issued a less-than-enthusiastic statement on the U.S.-E.U. trade deal that imposes a 15% duty on automotive imports to the U.S. Though that’s down from 27.5%, the group said it will negatively impact the industry on both sides of the Atlantic.
“The agreement takes an important step towards easing the intense uncertainty surrounding transatlantic trade relations in recent months, and ACEA welcomes this development in principle,” said the Sigrid de Vries, director general of the European Automobile Manufacturers’ Association.
“Nevertheless, the U.S. will retain higher tariffs on automobiles and automotive parts, and this will continue to have a negative impact not just for industry in the E.U. but also in the U.S.”
The group, which represents 16 of Europe’s biggest vehicle makers, said it’s still assessing the trade agreement’s impact on the union’s automotive industry.
“Looking forward, the E.U. and the U.S. should focus on reducing obstacles to vital transatlantic automotive trade, paving the way for stronger economic ties and shared prosperity,” the group said in its statement.
The German Association of the Automotive Industry, or VDA, while expressing relief that an agreement avoids a trade war, said it’s concerned about its negative impacts.
“But one thing is also clear: the U.S. tariff of 15%, including for automotive products, will cost the German automotive industry billions annually and will burden them in the midst of the transformation,” said VDA President Hildegard Müller.
The White House, which referred to President Donald Trump as “DEALMAKER-IN-CHIEF” as it announced the overall U.S.-E.U. agreement, said it amounts to “fundamentally rebalancing the economic relationship” between the two.
In addition to the 15% vehicle and auto parts imports tariff, the E.U. will continue to pay a 50% duty on steel, aluminum and copper imports to the U.S.
“This new tariff regime will generate tens of billions of dollars in revenue annually and help to close the longstanding trade imbalance between the United States and Europe by encouraging local sourcing, reshoring production, and ensuring that foreign producers contribute their fair share to the American economy,” the White House statement says.
DIG DEEPER: Automakers' Exposure to Tariffs Compared
