According to the Federal Register released by the U.S. Department of Commerce and the Office of the U.S. Trade Representative on September 25, as well as reports from the Detroit News, the United States has lowered tariffs on imported automobiles and various European products to 15%, retroactive to August 1, finalizing terms of the framework trade agreement reached approximately two months ago.

While most of the new tariffs apply to EU products shipped after September 1, the reduction in tariffs for automobiles and auto parts depends on whether the EU enacts legislation to lower tariffs on U.S. industrial goods and certain non-sensitive agricultural products. The EU implemented this measure and made concessions on August 28, enabling the Trump administration to apply the new auto tariffs retroactively. Previously, these vehicles were subject to a 25% tariff in addition to the existing 2.5% duty.

The changes listed in the Federal Register include a tariff exemption list covering aircraft, aircraft parts, generic drugs, raw materials, as well as “scarce natural resources” such as softwood lumber, certain metals, and ores. These exemptions will take effect on September 1. These goods will maintain their low tariff rates under the so-called Most-Favored-Nation (MFN) treatment. Under the MFN agreement, some products already subject to tariffs exceeding 15% will continue to face higher duties.

The 15% tariff ceiling will not stack on top of existing sector-specific tariffs. The EU expects this cap to also apply to potential future sector-specific tariffs in industries such as pharmaceuticals and semiconductors. However, the US and the EU have yet to make significant progress in reducing tariffs on steel and aluminum. The EU currently imposes a 50% tariff on exports of these products. The US noted in its announcement that the list of affected products may be revised in the future.