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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The Orenburg gas processing plant, the world's largest facility of its kind, has been forced to halt its intake of gas from Kazakhstan following a Ukrainian drone strike, according to Kazakhstan's energy ministry.
Israel launched air strikes and artillery fire on Gaza on Sunday, in what officials called a response to militant attacks, as the U.S.-mediated ceasefire came under renewed strain.
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A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
The war in Ukraine has reached a strategic impasse, and it seems that the conflict will not be solved by military means. This creates a path toward one of two alternatives: either a “frozen” phase that can last indefinitely or a quest for a durable political regulation.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Snapchat will start charging users who store more than 5GB of photos and videos in its Memories feature, prompting backlash from long-time users.
In the first nine months of this year, 10.2 billion cubic metres of gas were produced from the Azeri-Chirag-Gunashli (ACG) block in the Azerbaijani sector of the Caspian Sea, according to operational data released by the Ministry of Energy.
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Wall Street closed lower on Thursday as renewed concerns about regional banks and intensifying U.S.-China trade tensions weighed on investor sentiment, pulling major indexes off recent record highs.
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Tesla has told the Delaware Supreme Court that Elon Musk’s $56 billion pay package should have been restored last year through a shareholder vote, as the company appeals a lower court ruling that rescinded the CEO’s record compensation.
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