Tax change in the US: Exclusion of cars and steel from the new tax policy - USA Introduces Limitations on Basic Duty Exclusion for Non-Agricultural Products, Except for Automobiles and Steel
In a move that escalates the ongoing trade conflict between the US and the EU, President Donald Trump has announced a 30% tariff on EU product imports, effective from August 1. However, cars and steel imports will remain unaffected by this new tariff, as they are already subject to separate, higher tariffs.
On July 12, 2025, Trump made the announcement on his Truth Social platform. The new tariff is an additional measure aimed at addressing the US-EU trade deficit and related trade concerns, effectively raising the tariff rate on many products beyond the previous baseline tariffs announced earlier in 2025.
The 30% tariff applies to all product imports from the European Union, except cars and steel. These items are subject to their own specific tariff rates – 25% for cars and car parts, and 50% for steel and aluminum imports. The rationale for not raising these tariffs to 30% may involve trade negotiation strategy, existing trade enforcement mechanisms, and potential economic and political considerations given the sensitive nature of these industries.
The White House confirmed that the specific tariffs on cars and steel remain as previously defined, while other EU imports now face a heightened 30% tariff. This move increases overall pressure on EU exporters, but President Trump left the door open for further negotiations regarding the tariffs.
The US has already imposed a 25% tariff on imported EU cars and car parts, and a 50% tariff on steel and aluminum imports from the EU. The exemption of cars and steel from the new 30% tariff stems from the tariff structure and specific trade measures previously imposed.
This new tariff announcement targets a broad range of EU imports, but it does not replace or supersede the already established tariffs on cars and steel. The US Government Statement confirmed that import tariffs on specific goods like cars, steel, and aluminum are treated separately and not aggregated.
The trade conflict between the US and the EU continues to escalate, with both sides imposing tariffs and threatening further measures. The impact of these tariffs on the global economy and trade relations remains to be seen.
- The Community policy should address the escalating trade conflict between the US and the EU, considering the newly announced 30% tariff on EU product imports, specifically excluding cars and steel.
- Employment policies in the industry, finance, and business sectors might be affected by the increased general-news of the US-EU trade conflict, as the 30% tariff could potentially disrupt the flow of EU exports and impact job security.
- In light of the ongoing trade negotiations between the US and the EU, politics will play a crucial role in determining the future of tariffs on products like cars, steel, and aluminum, as decisions are influenced by economic and political considerations and existing trade enforcement mechanisms.
