EU Rushes To Scrap Tariffs On US Goods To Unlock Lower American Auto Duties: These Exporters Stand To Gain Big

The U.S. and European Union are ready for a trade-off, as recent reports suggest that the EU is willing to waive all tariffs on industrial imports from the U.S. in exchange for lower duties on its automobile exports to the country. This proposition of having no industrial tariffs is poised to benefit several U.S. exporters.

EU Could Soon Announce Tariff Removal On All US Industrial Imports

According to a report by Bloomberg, President Donald Trump will lower the tariff rates on EU auto imports once the EU removes tariffs on all U.S. industrial exports by the end of this week.

This comes as EU President Ursula von der Leyen has previously described the U.S.-EU trade deal as "a strong, if not perfect deal."

The data shared by Bloomberg shows that German and South Korean automakers are far more dependent on imports for their U.S. sales than their Japanese and American competitors.

Current Tariff Rates On Auto Imports

The U.S. currently imposes a 27.5% tariff on all automotive imports from the EU. The trade deal announced in late July did not apply to auto imports, despite Trump’s declaration of a 15% tariff rate on the EU.

However, this blanket 15% tariff rate would apply to auto and auto parts imported in the U.S. from the EU as well, back-dating to Aug. 1, if the EU passes the legislation of removing all tariffs on U.S. imports by the end of this month, reports Bloomberg.

Lower duties on auto exports are essential to the EU, as Germany alone exports $34.9 billion worth of new cars and parts to the U.S. as of 2024.

See Also: Trump’s ‘Discriminatory’ Tech Regulation Claims Attract EU Pushback, Brussels Cites Action Against Tiktok, Temu To Make Its Point

Which US Exporters Could Benefit From No Tariffs?

The U.S. export relationship with the EU is robust, spearheaded by high-value goods in sectors like industrial machinery, energy, aerospace, and life sciences.

While official government sources aggregate export data by product category rather than by individual companies, the primary exporters are typically the leading American multinational corporations in these key fields.

Based on the top export categories, the following is a representative list of prominent U.S. firms that are significant exporters to the European Union.

Price Action

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.10% at $645.83, while the QQQ advanced 0.12% to $573.31, according to Benzinga Pro data.

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