EU Proposes Auto Tariff Reduction Amid Trade Tensions with US

2025-03-10 09:44:25

According to recent reports from Germany's Handelsblatt1, the European Union plans to lower import tariffs on Automobiles from the current 10% to 2.5% as a conciliatory gesture toward the United States under the Trump administration. This move aims to de-escalate potential trade conflicts triggered by U.S. tariff threats.

Bernd Lange, a German Social Democrat and Chair of the European Parliament's International Trade Committee, confirmed to the Financial Times that the tariff adjustment applies to all imported Vehicles, not exclusively American ones. Lange stated: "We aim to reach an agreement before costs and tariffs escalate. This proposal has garnered unanimous support from EU member states, including automotive manufacturing giants like Germany."

Trade Data Highlights (2022):

EU exports to the U.S.: 740,000 vehicles (€37.4 billion)

U.S. exports to the EU: 270,000 vehicles (€9 billion)

China's Dominance in Global NEV Markets (2024):

China accounted for 70% of global new energy vehicle (NEV) sales from January to December 2024.

In December 2024, China contributed 92% of global NEV growth, followed by the U.S. (2%) and the UK (4%).

Major European markets like Germany and France recorded negative growth contributions in NEV sectors.

China's NEV market is now the core battleground for global automakers, with a 95% growth contribution in 2024, far outpacing the U.S., UK, and Brazil (each ~2%).