What is the US-IU trade agreement means for the auto sector
A common view of production lines at the Mercedes-Benz Assembly plant on June 4, 2025 at Germany’s Rastast.
Florian Waland | Getty Image News | Getty
President of the United States Donald Trump Has been appreciated Framework contract The European Union has promised to be the largest trade agreement so far and “excellent for a car.”
The contract between the US and the European Union on Sunday means the Trump administration will raise a 15% blanket rate on most EU goods.
This shows Trump’s significant decrease Threat From August 1, a charge of 30% and the existing rate rate on Europe’s vehicle area from 27.5% for almost half of.
When welcoming the industry group, trade agreement, the new tariff has expressed intense concern over the cost of reality.
European Commission President Ursula Von Deer Lane described the agreement as a “good deal” of the agreement after a strict negotiation, sitting in the US president in Scotland on Sunday.
The German Association of Automotive Industry (VDA) said on Monday that the US and the European Union have secured a contract to obstruct the transitable trade controversy.
VDA President Hilldgard Maller said in a statement, “Why the agreement will be drafted in a concrete way and how reliable it is,” VDA President Hilldgard Maller said in a statement.
“However, it is also clear that German automotive companies will spend billions annually on automotive products, and they will be burdened with their transformation in the middle of their transformation,” Maller said.
Along with the call to ensure the necessary support for the automotive supply chain, the VDA also pressured the EU to make it internationally competitive for investors and companies.
‘An important burden’
The European Automobile Manufacturers Association, the Industry Lobby Group on Monday said that the US-EU trade agreement “intense uncertainty,” in principle shows an important step to welcome development.
“However, the US will maintain a high rate on automobile and automobiles and it will have a negative impact not only for the industry in the EU but also in the United States,” ACEA Director General Sigid de Veries said in a statement.
The ACEA said that it will still closely examine the details of the agreement that needs to be clarified.
July July, 225, a car in the production line of New Citron C5 Aircross at the Stellantis Carmaker Plant in Chartes-D-Bretagne, near West France on July 225.
Demian May | AFP | Getty
Rico Luman, a senior sector economist of the transport and logistics of Dutch Bank ING, said on Monday that the new rate on a car exported to the United States from the European Union is clearly good at 5.5..5% – but it still reflects the “significant burden” for carriers.
“The margin is under pressure on the margin in the Multi-Chellenz Market, and this bill cannot be paid to the customer without any volume loss,” Luman told CNBC via email.
During the second quarter earnings season, it was seen that Karamkar is already struggling with the impact of the rate, and more has happened in the coming months, Luman said.
He said, “Weak dollars make us more expensive and complicated because of the weakest dollar. Therefore, world car makers are looking for ways to adjust manufacturing footprints in all current facilities,” he added.
Winners and defeated?
StokesXX Europe Autos Index made a profit during dawn deals, up to 1.6%before going to almost all profit.
French car part suppliers Valeo London time (morning: 25: 5: 25 AT), 4% more trade with luxury Italian caramekar Ferrari Up to 0.9%. Germany BMWW, Phoswagon And Mercedes-Benz GroupHowever, all was less than 1.2%.
Ray Suskin, an equity analyst in Morningstar, said the US-EU trade agreement will benefit the European Union Automachers, which rely on imports from Europe.
“We guess that Porsche, Mercedes, BMW and Volkswagen, in that order, are the most important beneficiaries of this trade agreement, which has a major contributor to imports from Europe in Mexico and/ or Canada in Europe,” Suskin said.
“Stellantas import one-digit share in its continent for sales in the United States and thus should not see meaningful reversal,” she added.
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