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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Iran's Foreign Affairs Spokesman Esmaeil Baqaei said on Saturday (25 April) that there were no plans to meet with the U.S. in Islamabad, despite Iranian Foreign Minister Abbas Araghchi landing in the Pakistani capital late on Friday. Araghchi said he was visiting Islamabad, Muscat and Moscow.
Argentina has reiterated its interest in resuming talks with the United Kingdom over the Falkland Islands, a disputed archipelago in the South Atlantic, after reports that an internal Pentagon email suggested reviewing Washington’s support for the UK’s claim amid tensions over the Iran war.
Diplomatic efforts to end the Iran war are intensifying, with the White House confirming that U.S. President Donald Trump will send special envoy Steve Witkoff and adviser Jared Kushner to Islamabad for talks with Iran under Pakistani mediation.
Two local trains collided head-on north of Copenhagen on Thursday (23 April), injuring 17 people, five of them critically, according to emergency services.
The U.S. military is redirecting at least three Iranian-flagged tankers after intercepting them in Asian waters near India, Malaysia and Sri Lanka, shipping and security sources said on Wednesday. Meanwhile, Tehran said U.S. breaches, blockades and threats are undermining “genuine negotiations.”
Diplomatic efforts to end the Iran war are intensifying, with the White House confirming that U.S. President Donald Trump will send special envoy Steve Witkoff and adviser Jared Kushner to Islamabad for talks with Iran under Pakistani mediation.
Russian emergency services have contained a major fire at the Tuapse oil refinery on the Black Sea coast, local officials said on Thursday, ending a four-day effort after a Ukrainian drone strike.
Slovenia’s national broadcaster RTV Slovenia has confirmed it will not air the Eurovision Song Contest 2026, joining a widening boycott over Israel’s participation.
The United States has issued an international warning accusing Chinese firms, including AI start-up DeepSeek, of allegedly stealing intellectual property from American artificial intelligence labs.
Meta Platforms will cut about 10% of its global workforce from 20 May, marking the start of a wider restructuring as the company increases spending on artificial intelligence (AI) and plans further layoffs later this year, according to sources familiar with the matter.
President Donald Trump has warned that the U.S. could impose "big" tariffs on British goods if the UK does not remove its digital services tax. Speaking to reporters at the White House on Thursday, Trump said Washington was ready to act in response to the levy on major American technology firms.
China's domestic automakers have a message for the boardrooms of premium German brands such as Porsche, Mercedes-Benz, and BMW: We are coming for your customers, and we are armed with superior technology at a fraction of the cost.
Tim Cook, the tech boss who led Apple to become a $4 trillion company in its post-Steve Jobs era, is stepping down after 15 years in the top job. John Ternus, an Apple veteran of 25 years, who is currently the U.S. company’s Vice President of Hardware Engineering, will take over from September.
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