U.S. Ambassador to the EU Andy Puzder insists that the new trade agreement with the European Union will help rebalance the auto industry—while EU officials stress that the sustainability of a deal will be key.
The details: In a Fox Business interview, the newly sworn-in Ambassador outlined the complex steps ahead to ensure the new framework delivers.
Cut back on overregulation in Europe that hampers U.S. trade.
Push back against Chinese trade policies harming both Europe and the U.S.
Support peace in Ukraine to foster regional economic stability.
Pressure Europe to curb reliance on Russian oil.
Zeroing in: At the heart of the deal is a U.S. pledge to cap Section 232 tariffs on European autos and auto parts at 15%, if the EU moves forward with tariff reductions on pharmaceuticals, semiconductors, and lumber.
If an EU auto product already carries a 15% or higher Most Favored Nation (MFN) tariff, no additional Section 232 tariffs will apply.
If the MFN tariff is below 15%, the combined tariff (MFN + Section 232) will still be capped at 15%.
Worth noting: The framework also says the U.S. and EU plan to consider discounted rates on steel, aluminum and other products under a quota system.
What they’re saying: “Prior to this trade deal, if you wanted to sell a Cadillac in Berlin, you had to pay a 10% tariff. If you wanted to sell a Mercedes in Detroit, you paid a 2.5% tariff. Well, those days are over,” Puzder said on Mornings with Maria.
“We're now going to be able to compete on price with European automakers in Europe… at an advantage in the United States because they’re going to have that 15% tariff,” he added.
Why it matters: The deal levels the playing field for American and European automakers, adds predictability to input costs, and signals a shift away from trade spats toward rules-based cooperation, claims Puzder.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
Between the lines: European Central Bank President Christine Lagarde has warned that the real measure of success will be certainty.
“If that deal is 15%, if it's a cap for all goods except those that are in the particular investigation or due diligence, companies will adjust. Markets will adjust. But I don't want this continued uncertainty,” she told Fox Business.
Bottom line: While the U.S.–EU trade agreement offers the auto industry relief through tariff caps and cost stabilization—there are still doubts about its political durability.
A quick word from our partner
Winning in today’s market means more than just adjusting prices or boosting ad spend.
It’s about seeing what’s holding each vehicle back — and taking smarter action from day one.
Long before AI became a buzzword, Lotlinx built the industry's first VIN performance platform — powered by AI and the most robust dataset of VIN and shopper behavior — to help dealers optimize every vehicle and maximize profit.
With Lotlinx, dealers can:
Spot inventory risk before it hits
Move cars with precision
Turn each VIN Into a star
