Reducing Trade War Fears Lift Automakers’ SentimentĪccording to a European Commission report released last month, a 25% auto tariff will lead to an addition of extra 10,000 euros or $11,700 to the production cost of any European-built car imported to the United States. However, the meeting turned out to be “a big day” for the U.S.-EU trade relationship, with Trump calling it “a new phase.” In fact, before the start of the Jul 25 meeting the President threatened to raise auto tariffs to as much as 25%. The European Commission quickly took "rebalancing measures” by imposing import tariffs of 2.8 billion euros or more than $3.2 billion on a variety of American products.įollowing this turn of events, the American President threatened to levy a tariff of 20% on cars and other automobiles imported from EU countries. The “tit-for-tat” tariff war started last month after the United States slapped tariffs of 25% on steel imports and 10% on aluminum imports from EU countries. How the Entire U.S.-EU Tariff War Turned? This is definitely good news for Euro auto giants, mainly because high auto tariffs would have raised overall production cost, as pointed out by a European Commission report. Additionally, Trump has signaled at refraining from imposing heavy tariffs on auto imports from EU countries while negotiations continue.Īfter months of uncertainty, Trump and Juncker’s constructive approach has lessened rising auto tariff concerns. The two world leaders hinted at working toward “zero tariffs” on several major industrial products. On July 25, the meeting between President Donald Trump and European Commission President Jean-Claude Juncker at the White House eased trade war fears between the two economies. US to Put Auto Tariffs On Hold: Will Euro Carmakers Gain?
Here are highlights from Friday’s Analyst Blog: Stocks recently featured in the blog include: Daimler DDAIF, Ford Motor (F), Volkswagen Aktiengesellschaft VLKAY, Fiat Chrysler FCAU and Ferrari (RACE Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Chicago, IL –J– announces the list of stocks featured in the Analyst Blog.
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