US sharply reduces tax on imported cars from EU

The Trump administration has reduced import tariffs on cars from the European Union (EU) to 15%, while tariffs on Korean cars remain at 25% as the two sides are still negotiating details of a bilateral trade agreement reached in late July 2025.

According to the announcement published on September 25, published in the Federal Register by the International Trade Administration of the US Department of Commerce and the Office of the US Trade Representative (USTR), the tax reduction takes effect retroactively from August 1. Previously, cars imported from the EU to the US were subject to a total tax rate of 27.5%.

The tariff reduction, made under a commitment in the US-EU bilateral trade agreement, comes after the Trump administration began applying a new 15% tariff on imported cars from Japan from September 16.

The tariff cut from the previous 27.5 percent – including a 25 percent specific tax on the auto industry and an additional 2.5 percent tax – could put Korean car exporters at a disadvantage, as their products are still subject to a 25 percent tariff.

The US has also agreed to reduce tariffs on imported cars from South Korea to 15% as part of the trade deal, but the timing of the deal is unclear as the two sides have yet to agree on details of the $350 billion investment package that South Korea has committed to under the deal.

The United States is currently one of South Korea's largest auto export markets. Last year, South Korean car exports to the US reached $34.7 billion, accounting for 49.1% of the country's total auto exports. Of which, Hyundai Motor Group exported about 970,000 cars to the US market, while GM Korea exported about 410,000 cars.

Source: https://vtv.vn/my-giam-manh-thue-cho-o-to-nhap-khau-tu-eu-100250925141743953.htm