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FILE-A car hauler carries Toyota RAV4 vehicles as it enters to cross the Ambassador Bridge in Windsor, Ontario to go to Detroit, Michigan on February 3, 2025. (Photo by JEFF KOWALSKY\/AFP via Getty Images) <\/p>\n
President Donald Trump and European Commission President Ursula von der Leyen announced a trade deal enforcing 15% tariffs on most European goods imported into the U.S.\u00a0<\/p>\n
The Associated Press reported that the tariff rate is lower than the 20% Trump first proposed, and lower than his previous tariff threats of 50% and then 30%.\u00a0<\/p>\n
What products will be more expensive under the U.S.-EU trade deal? <\/p>\n
Why you should care:<\/p>\n
The deal calls for a 15% tariff rate on “the vast majority” of European goods brought into the U.S., including cars, computer chips and pharmaceuticals.<\/p>\n
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The Associated Press reported that President Donald Trump said the 50% U.S. tariff on imported steel would stay in place, but Trump said pharmaceuticals were not included in the U.S.-EU trade deal, but European Commission President Ursula von der Leyen said pharmaceuticals are separate from Sunday\u2019s deal.\u00a0<\/p>\n
RELATED:\u00a0Trump announces trade deal with European Union<\/a><\/p>\n Under this tariff deal, car companies are expected to see higher prices. When asked if European automakers might still sell cars at 15%, von der Leyen told the Associated Press that the rate was lower than the 27.5% rate, which has been the rate under Trump\u2019s 25% tariff on cars from all countries, including the preexisting U.S. car tariff of 2.5%.\u00a0<\/p>\n According to the Associated Press, the tariffs on cars may be significant for some auto manufacturers since Volkswagen said it endured a $1.5 billion hit to its profits in the first part of 2025 due to higher tariffs.<\/p>\n Meanwhile, Mercedes-Benz dealers in the U.S. told the AP they are keeping their existing 2025 car model year prices “until further notice.”<\/p>\n Mercedes has slight tariff protection because it manufactures 35% of the cars sold in the U.S. in Tuscaloosa, Alabama, but the automaker explained to the AP that it expects prices to rise in the coming years.\u00a0<\/p>\n Von der Leyen told the AP that the U.S. and European Union agreed on zero tariffs on a variety of “strategic goods” like aircraft and aircraft parts, semiconductor equipment, some agricultural products, certain chemicals, and some natural resources and raw materials.<\/p>\n The Source: Information for this story was provided by the Associated Press, which shares background on the U.S.-EU deal and the products that may change in price due to the tariffs. This story was reported from Washington, D.C.\u00a0<\/p>\n \u00a0<\/p>\n Tariffs<\/a>News<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"article FILE-A car hauler carries Toyota RAV4 vehicles as it enters to cross the Ambassador Bridge in Windsor,…\n","protected":false},"author":2,"featured_media":43964,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,3,759],"class_list":["post-43963","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-news","tag-tariffs"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/43963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=43963"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/43963\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/43964"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=43963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=43963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=43963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}