European automakers including BMW and Mercedes-Benz are set to gain €4 billion from a new EU-U.S. trade agreement that lowers tariffs on vehicle exports. The move offers relief in a key market but still leaves duties higher than pre-2024 levels.
BMW, Mercedes-Benz and other European carmakers are expected to benefit by up to €4 billion ($4.7 billion) following a trade deal between the European Union and the United States, according to Bloomberg Intelligence.
The agreement reduces tariffs on car imports from the EU to 15%, down from 27.5%.
The deal brings clarity to a vital export market for major automakers such as Mercedes, BMW, Porsche and Volvo. The companies had previously warned that steep tariffs imposed by the Trump administration in April would increase supply-chain costs and disrupt financial forecasts.
BMW and Mercedes, which export around 185,000 vehicles annually from their U.S. plants, will also benefit from tariff exemptions, according to Bloomberg Intelligence analyst Michael Dean.
Auto stocks across Europe rose on Monday following the announcement.
“It’s the best result out of what was looking like a bad situation,” said auto analyst Matthias Schmidt, noting that German and Swedish executives will be relieved.
However, industry groups voiced concern that the new 15% tariff remains significantly higher than the 2.5% rate that existed before the recent trade tensions. Germany’s VCI chemical-industry association, which includes suppliers to carmakers such as BASF, warned that elevated tariffs could erode the competitiveness of European exports.
“If you’re bracing for a hurricane, you’re grateful for a storm,” said VCI President Wolfgang Große Entrup. “Nevertheless, the agreed tariffs are too high.”
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Russian President Vladimir Putin has congratulated U.S. President Donald Trump on the 250th anniversary of American independence, saying Russia and the United States share a special responsibility for maintaining global security as the world's two largest nuclear powers.
The World Meteorological Organization (WMO) has raised its forecast for the rapid emergence of a strong El Niño, warning the climate pattern is likely to drive higher global temperatures and intensify extreme weather in the months ahead.
India is investigating a data breach at Tata Electronics that exposed sensitive documents linked to Apple's unreleased iPhone 18 Pro, marking the government's first public comments on the incident.
Iran and the U.S. have concluded indirect talks in Doha without a major breakthrough, with discussions focused on maritime traffic in the Strait of Hormuz and frozen Iranian funds. Both sides are expected to meet again after the funeral of Ayatollah Ali Khamenei.
International politicians and religious leaders have paid respects to Iran's late Supreme Leader Ali Khamenei throughout the day, ahead of his six day funeral ceremony which begins on Saturday. His casket is currently on display at the Iman Khomeini Grand Mosalla in Tehran.
Germany has requested urgent talks with China's ambassador following reports that Chinese authorities trained Russian soldiers, adding fresh strain to relations between Beijing and Europe amid the war in Ukraine.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
Rocket Lab has agreed to acquire Iridium Communications in an $8 billion deal, giving the space company a global satellite communications network and accelerating its expansion beyond launch services. The acquisition marks a major step in its ambition to become a fully integrated space business.
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