The U.S. has lowered its tariff on imported autos from the European Union to 15% from 25%, honoring a framework trade agreement reached between the two sides last month. The reduction retroactively became effective as of August 1. EU automakers Porsche (POAHY), BMW (BMWKY) and Mercedes-Benz (MBGYY) are trading higher on the news.
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The auto tariff reduction was contingent on the EU removing tariffs on all U.S. industrial goods and giving priority to some U.S. agricultural and seafood products, which the bloc honored in August.
EU Aircraft and Generic Pharmaceutical Drugs Receive Tariff Break
In a Federal Register notice, the Department of Commerce also listed several other products that would be exempt from tariffs, including aircraft, aircraft parts, and generic pharmaceutical drugs and their ingredients.
The lower tariffs come after President Trump signed an executive order on September 5 to streamline tariff reductions for countries that have signed trade deals with the U.S.
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