US keeping lofty EU car tariffs until levies on American goods lowered — as large economies lock in trade deal

The US will keep higher tariffs on European carmakers in place until the EU lowers tariffs on American goods — as two of the world’s largest economies on Thursday finally locked in a framework trade deal hammered out last month.

The two sides fired off a joint statement listing the commitments made after President Trump and EU Commission President Ursula von der Leyen announced the deal on July 27 following months of negotiations.

Washington will make moves to reduce the current 27.5% US tariffs on European cars and car parts once Brussels introduces the legislation needed to enact the promised tariff cuts on US goods, they said in a joint statement.

As a result, carmakers could see relief from the current tariffs within “hopefully weeks,” a senior administration official told Reuters.

“As soon as they’re able to introduce that legislation — and I don’t mean pass it and fully implement it, but really introduce it — then we will be in a position to provide that relief. And I will say that both sides are very interested in moving quickly,” the official said.

It wasn’t immediately clear when Brussels would start the legislative process.

As part of the framework deal, the EU also pledged to eliminate tariffs on all US industrial goods and to provide preferential market access for a wide range of US seafood and agricultural goods.

The US agreed to apply a 15% US tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber.

The joint statement was “a play to hold each other accountable” and ensure that both sides carried out the pledges announced last month, the admin official said.

“We are trying to sequence with the European Union to make sure that … they feel sufficient pressure to obtain the mandate they need to begin the legislative process for reducing their tariffs, as they’ve promised,” the official said.

“We’re confident that they’ll do that. It’s just good for all parties to make sure that everyone’s on the same page and taking actions around the same time.”

With Post wires