US, EU Confirm 15% Tariffs on Autos, Pharmaceuticals

The United States and the European Union have reached a significant trade agreement that establishes a maximum tariff rate of 15 percent on most European exports to the U.S., including key sectors such as automotive and pharmaceuticals. This deal, finalized after negotiations involving President Donald Trump and European Commission President Ursula von der Leyen, aims to resolve longstanding trade imbalances and promote fair competition, notably reducing the previous U.S. tariff on European cars from 27.5 percent to 15 percent. While the agreement lowers tariffs on many goods, some sectors like European wine and spirits continue to face tariffs, which may increase costs for American consumers and have drawn criticism from industry representatives. The pharmaceutical sector is also a focus, with ongoing efforts and a proposed framework to reduce or eliminate tariffs, reflecting both parties’ commitment to improving market access and regulatory cooperation. These developments mark a strategic effort to stabilize and enhance the transatlantic economic relationship, which is valued at approximately $2.8 trillion annually. The agreement is expected to be implemented soon, with tariffs going into effect from September 1, and further detailed legislative proposals anticipated from the EU.