Trump Inks European Union Trade Deal With 15 Percent Tariffs

As Ford Authority reported earlier this month, the European Union has been negotiating with the U.S. for some time now with the desire to hammer out a new trade deal before 25 percent tariffs on certain goods were set to be added to imports from that region starting August 1^st – after which those levies could have soared to 50 percent. Now, the two sides have indeed reached a new trade deal, which will result in lower tariffs and a few major investments as well, when it’s finalized.

According to the Associated Press, the U.S. and EU have agreed to the framework of a new trade deal that sets a 15 percent tariff on most goods – including automobiles – news that was announced during a meeting between President Donald Trump and European Commission chief Ursula von der Leyen in Scotland. The deal also reportedly involves a $600 billion dollar investment on the EU’s part in the U.S., along with an additional $750 billion slated to go to U.S.-based energy and military purchases, the former of which is intended to reduce the region’s dependence on Russia.

The 15 percent tariffs will apply to things like cars, semiconductors, and pharmaceuticals, but certain other products – including aircraft and component parts, select chemicals, generic drugs, semiconductor equipment, agricultural products, natural resources, and critical raw materials – won’t be subjected to tariffs, and both sides admitted that more items could be exempted as well in the coming weeks before the deal is finalized.

Ford currently builds and a handful of models in the U.S. that are exported to Europe for sale. That list includes the Ford Mustang, which has been sold in that region for quite some time now, along with the Ford F-150 – which has become more popular in a place that has long favored smaller vehicles – and the Ford Bronco, which is a fairly new addition to the European lineup.