- The Trump administration lowered tariffs on Japanese cars to 15% this week
- Other countries may be aiming for the same target
The Trump administration enacted 25% tariffs on new cars and car parts in spring, reshaping the worldwide auto industry. The move has seen some automakers shift some production to the U.S., and analysts say it could mean the end of some affordable cars.
But an increasing number say 25% may quickly become 15%.
Earlier this week, the White House announced a new trade deal that reportedly lowers the tariff rate to 15% for Japanese cars. Now, reports suggest European negotiators believe they can also score a 15% tariff rate in discussions.
Bloomberg reports, “The European Union and the U.S. are progressing toward an agreement that would set a 15% tariff for most imports, according to diplomats briefed on the negotiations.”
Related: How Each Automaker is Responding to Tariffs
In a separate report, Bloomberg says negotiations with South Korea “are similarly focused on reaching a 15% tariff rate, including for autos.” Bloomberg cites “people familiar with the matter.”
Auto industry representatives are reportedly pushing for similar deals for Mexico and Canada.
The AP reports, “U.S. automakers worry that President Donald Trump’s agreement to tariff Japanese vehicles at 15% would put them at a competitive disadvantage,” as they import many cars and parts from other North American countries.
Autos Drive America, an industry trade group, issued a statement encouraging “the Trump administration to swiftly reach similar agreements with other allies and partners, especially the European Union, South Korea, Canada, and Mexico.”