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President Trump has finally landed a big trade deal with the EU and it means imported cars face a 15 percent tariff. Many are astounded at the details of the agreement, which was made between Trump and European Commission President Ursula von der Leyen yesterday, as the US has clearly been favored.
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When asked by a reporter about the concessions the US made for the trade agreement to happen, von der Leyen answered that there was a trade “imbalance” between the two economies, saying the deal makes it possible for the US and Europe to both thrive.
But this means all Porsches and other cars made in Europe, not those under European brands but are manufactured in the US, will be subject to a 15 percent tariff moving forward. That’s better than what was coming on August 1 with a 30 percent tariff threatened by President Trump.
Considering most cars being shipped from the EU to the US are luxury models and their owners are supposed well-heeled, they should be able to swing the extra expense without any problem.
In other words, your BMW M5 is going to cost you extra moving forward, or BMW will have to eat the extra cost. Since such vehicles are often driven as status symbols, perhaps that will only add to their allure.
Not everyone in Europe feels like this deal is a good one for the EU. French prime minister Francois Bayrou shared scathing criticism of the agreement via X, saying, “It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission.”
However, other European leaders have shown support for the deal. Some clearly feel they got lucky, avoiding being shut out from the top economy in the world after enjoying a rather unbalanced economic relationship since the close of WWII.
Image via Porsche
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