EU automakers set to save 500-600 million euros a month as US-EU trade deal takes effect

European automakers are set to save roughly 500-600 million euros per month after the United States completed the U.S. end of its trade agreement with the European Union, the EU’s top trade official said Thursday. The retroactive effect to Aug. 1 means the lower duties are already benefiting industry as manufacturers adjust to the new regime.

Trade Commissioner Maros Sefcovic said the change centers on a 15% tariff on most EU goods, a rate that took effect with publication in the U.S. Federal Register outlining what customs officials should charge. The publication marks the formal implementation of the tariff level, replacing the higher rate that had been in place.

The tariff reduction from 27.5% to 15% is the deal’s centerpiece and is being pitched by the European Commission as a major relief for European autos and parts makers. Sefcovic noted that the measure would yield substantial monthly savings for automakers, retroactive to Aug. 1, describing the figure as “something like 500-600 million euros per month.”

He spoke ahead of a meeting with Southeast Asian trade ministers in Kuala Lumpur, Malaysia, where officials were discussing broader trade issues as part of post-negotiation talks with major markets outside Europe.

The 15% tariff remains higher than pre-Trump levels, which averaged in the single digits, a point of criticism from business associations and some members of the European Parliament. Still, Sefcovic said most member states supported the deal and that after detailed exchanges and presentations on the details he expected lawmakers to back it as well.

Sefcovic described the agreement as the best deal available after difficult talks with U.S. officials, saying any alternative would have been much worse and that President Trump had threatened even higher rates during the negotiations.