The United States has agreed to reduce tariffs on vehicle imports from the European Union (EU) to 15% retroactively on August 1, a day after the bloc approved tariff cuts on US goods in return.
The original 25% tariff on cars imported from the EU has been eased, with some exceptions including aviation, generic drugs and certain metals aimed at strengthening the framework for trade between the two sides.
German automotive companies such as Volkswagen, Porsche and Mercedes-Benz saw their shares rise following the announcement as the market welcomed the reduction in import duty costs and hopes of a recovery in trade flows.
The move is seen as a reinforcement of the trade agreement reached last summer between the US and the EU.
It could also be a sign of broader tariff easing in other sectors to boost international trade.
