In a move with major implications for the global automotive industry, the U.S. federal government has implemented a 15% import tariff on auto imports from the European Union. According to a federal register notice from September 24, the move affects cars as well as auto parts. That notice went on to indicate that the duties are also retroactive to August 1.
The Move Follows a Protracted Negotiation
The new tariff follows an August 21 announcement by the United States and the EU regarding a “Framework for an Agreement on Reciprocal, Fair and Balanced Trade.” Previously, imports from the 27-member trading bloc had faced duties up to 25%. “Most of the new rates take effect for EU goods shipped starting September 1, but the relief for automobiles and parts was contingent on the EU introducing legislation to lower tariffs on American goods,” business daily The Irish Times reported in a September 24 announcement.
“The bloc followed through with that action on August 28, paving the way for the Trump administration to backdate the new auto charge,” the publication added.
EU Automotive Industry Reacts Positively
Reports indicate that German automakers’ share prices gained on the news. Volkswagen’s share price on the Frankfurt Stock Exchange finished September 24 at €93.40 ($109.28), up 3.2% from €90.50 ($105.91) on September 22. Data on the bourse indicates that the latest price is up over 12.6% from the April 8 low of €82.92 ($97.03).
The European automotive industry has also faced pressure from imports of Chinese vehicles, including high-end passenger cars, small utility trucks, and coaches, which in some cases have been over 20% cheaper than domestically produced units.
In its H1 report, the European Automobile Manufacturers’ Association (ACEA) stated that the United States is the second-largest export market for EU automakers in terms of value, after the United Kingdom. Citing Eurostat data, the association shows that exports to the United States totaled almost €17.3 billion ($20.2 billion) in the first six months of 2025, off 13.6% from slightly over €20 billion ($23.4 billion).
The ACEA added that the United States occupied third place in terms of volume, with an 8.9% decrease to 351,264 units from 305,701 units. High tariffs originally imposed by the Trump administration, as well as resulting uncertainty in supply chains, were behind the declines.
