Europe auto group welcomes US-EU deal as 'de-escalation'

Paris: Europe s main auto group on Monday welcomed an EU US trade deal that will apply 15 percent tariffs on European auto exports as a de escalation...

Paris: Europe's main auto group on Monday welcomed an EU-US trade deal that will apply 15-percent tariffs on European auto exports as a "de-escalation" and an easing of uncertainty.

In a statement, the European Automobile Manufacturers Association (ACEA) said it "supports de-escalation," as director general Sigrid de Vries said "the agreement takes an important step towards easing the intense uncertainty surrounding transatlantic trade relations in recent months, and ACEA welcomes this development in principle.

"Nevertheless, the US will retain higher tariffs on automobiles and automotive parts, and this will continue to have a negative impact not just for industry in the EU but also in the US," she said.

US President Donald Trump and European Commission President Ursula von der Leyen clinched a customs agreement in Scotland on Sunday, whereby European automotive products exported to the United States will be taxed at 15 percent rather than the 30 percent Trump had earlier threatened to impose from August 1 in the absence of an accord.

The automotive industry is one of those most affected by the Trump tariffs, both for the export of cars, particularly German ones, to the United States, and for the manufacturing of cars in North America.