Trump Admin Finalizes Trade Deal With European Union

Since taking office early this year, President Donald Trump has imposed tariffs on various goods imported into the U.S., including automobiles, associated parts, and raw materials. Though Ford is better positioned than most of its peers to handle the impacts of these tariffs, it still wound up spending $800 million in Q2 2025 on levies alone. Meanwhile, industry groups that represent The Blue Oval and its rivals are calling for more predictability in regard to how Trump doles out these tariffs, and now, they’re getting a little of that certainty thanks to a new trade deal with the European Union.

The Trump administration and the EU announced a tentative agreement on a new trade deal just a few weeks ago, and now, according to Reuters, the two sides have reached a formal agreement. The new deal will result in lower tariffs on imported European automobiles than the previous 25 percent levy – 15 percent both both autos and auto parts – and contains exemptions for generic pharmaceuticals, aircraft, and aircraft parts.

Those auto tariffs were retroactively dated to the beginning of August, providing some relief for European automakers, and there are several other exemptions worth noting. Those include graphite, nickel, rare earths, magnesium and various other metals, hundreds of electronic and mechanical components used in the production of aircraft, generic pharmaceuticals and their ingredients, plus chemical precursors, to name just a few.

As Ford Authority previously reported, the Commerce Department is mulling the idea of imposing tariffs on additional imported auto parts amid national security concerns expressed by some within the American automotive industry. It is worth noting that the U.S. Court of Appeals for the Federal Circuit recently ruled that President Trump has no legal right to impose sweeping tariffs on a variety of nations without additional approval, but for now at least, those levies remain in effect.