German cars waiting for export shipment. Yonhap News 

Although the United States began imposing "reciprocal tariffs" adjusted by country starting on the 7th (local time), the promised reduction in automobile tariffs for the European Union (EU) has not yet been implemented.

When asked at a regular press briefing on the same day, "Have you heard when the US will implement the reduction of automobile tariff rates from 27.5% to 15%?", Olof Gill, EU Commission trade spokesperson, replied, "It is difficult to specify the exact timing."

Gill reiterated, "The US clearly promised to apply a 15% ceiling to all our items, and that ceiling will apply to automobiles and automotive parts, pharmaceuticals, and semiconductors."

He urged, "We expect the US to implement such an agreement as soon as possible."

On the 27th of last month, the EU and the US reached a trade agreement based on imposing a 15% tariff on most EU exports to the US.

The EU had stated that the US promised an "all-inclusive" 15% ceiling that would not be subject to the existing Most Favored Nation (MFN) tariff rates, and that it had agreed to an immediate reduction of the tariff rate for automobiles, which currently has a total rate of 27.5% (2.5% MFN tariff + 25% item tariff), to 15%.

However, the executive order signed by US President Donald Trump on the 31st omitted these agreed-upon terms, and the automobile tariff rate remains 27.5% even on this day when reciprocal tariffs began to take effect.

In this regard, Reuters reported that Hildegard Müller, president of the German Association of the Automotive Industry (VDA), issued a statement on the same day, urging that the promise of the trade agreement between the EU and the US be implemented immediately, as the 27.5% item tariff on automobiles still applies.

The agreement between the two sides to apply reciprocal zero tariffs on strategic items, including aircraft, also does not appear to be implemented yet. Gill explained that additional executive orders from the US side are needed for the reduction of automobile tariffs and reciprocal zero tariff measures.

The joint statement on the trade agreement, which the two sides were scheduled to announce, is also delayed. The joint statement also appears to be awaiting final approval from President Trump.

An EU senior official told reporters on the 5th that "the joint statement is 90-95% complete," but also mentioned that they are awaiting a response from the US side.

While the joint statement is not a legally binding document, it is expected to specify zero-tariff items and the application of a 15% tariff rate for pharmaceuticals and semiconductors, which could reduce uncertainty.

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