EU Explains How 15% Ceiling Would Work
The European Union, in a fact sheet released July 29, said that tariffs on EU exports to the U.S. will change from 10% plus the most-favored nation tariff to 15%, except for goods that have an MFN rate higher than 15%, and for aircraft and aircraft parts, certain generic drugs and natural resources. In the case of those exceptions, the standard MFN rates apply.
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The EU and the U.S. agreed to work to add more products to the list that would be subject to previous MFN rates.
Cars and car parts, currently subject to 25% Section 232 tariffs plus MFN, would go to 15%, all-inclusive.
Currently, there are no 10% reciprocal tariffs on goods that are under the scope of pending Section 232 tariffs, and the EU fact sheet says: "Until the US decides on whether to impose additional tariffs on these products pursuant to Section 232, they will remain subject only to US MFN tariffs."
However, when exactly those changes will come is unclear. The fact sheet said the changes would go into effect Aug. 1; however, in a press briefing July 29, European Commission trade spokesman Olof Gill said "the exact entry into force of every tariff, that's going to depend on practical technical implementation [and] partially because we're finalizing the joint statement."
On the joint statement, he said, "We're working on it, we hope to have it ready soon."