US Tariffs and Their Impact on the European Vehicle Logistics Trade

US Tariffs and Their Impact on the European Vehicle Logistics Trade

ECG — 2025-04-07

News from ECG

On April 2, 2025, newly declared as “Liberation Day,” President Donald J. Trump announced a new round of tariffs affecting countries worldwide.
 
Reciprocal Tariffs
An executive order introduces tariffs on imports into the U.S. that match the tariffs those countries impose on American goods. A list published by the U.S. government includes 55 countries and territories, along with their adjusted reciprocal tariff rates.
 
Tariff rates for Europe:

• Serbia: 38% (highest in Europe)
• Liechtenstein: 37%
• Bosnia and Herzegovina: 36%
• North Macedonia: 33%
• Moldova: 31%
• European Union: 20%
• United Kingdom: Not listed

 
IEEPA Reciprocal VAT Tariffs
 
Additionally, under the International Emergency Economic Powers Act (IEEPA), Trump has imposed a flat 10% surcharge on countries with high VAT rates on U.S. goods.

• Countries already subject to reciprocal tariffs have the 10% included in their rates.
• The UK, which was not listed among the 55 countries, is now subject to a flat 10% tariff.

Implementation dates:

• Reciprocal tariffs: Effective April 9, 2025, at 12:01 AM EDT
• IEEPA 10% tariff: Effective April 5, 2025, at 12:01 AM EDT

Automotive Industry: Exceptions and New Tariffs

• Cars and auto parts already subject to Section 232 tariffs are exempt from the new reciprocal tariffs.

Section 232 – Steel and Aluminum Tariffs

• On February 11, 2025, the steel and aluminum tariffs were increased to 25%.
• Previous exemptions for the EU and UK have been removed.

Section 232 – Automotive Industry Tariffs

• On March 26, 2025, a 25% tariff on automotive imports was announced.
• The tariff applies to all passenger vehicles, including sedans, SUVs, crossovers, minivans, cargo vans, and light trucks.
• Key components such as engines, transmissions, powertrain parts, and electrical components are also subject to the 25% import duty.
• Effective date: April 3, 2025, at 12:01 AM EDT.

ECG Members can read the full update here.