A trade deal between the European Union (EU) and the United States has been formalized, with specific benchmarks outlined for the EU to secure tariff discounts on automobiles, pharmaceuticals, and semiconductors. The deal, however, does not include wine and spirits, a point of disappointment for the Distilled Spirits Council of the United States. The EU Trade Commissioner, Maros Sefcovic, stated that the door is not closed to future tariff reductions for the sector.
The agreement will result in a significant relief for the automobile sector. The U.S. will codify reduced auto tariffs once the EU introduces the necessary legislative proposal to enact its own promised tariff reductions. The discounted 15% tariffs on European auto imports, which are lower than the previous 27.5% tariff, will be effective from the start of the month that the EU legislation is advanced.