US Slashes EU Vehicle Tariffs to 15% While Imposing Steep Penalties on Italian Pasta Importers in Trade Shakeup

Welcome to European Union Tariff News and Tracker, your essential update on the latest trade tensions shaping transatlantic commerce.

In a major development for EU exporters, the US has slashed tariffs on European vehicles from 25% to 15%, effective August 1, following a successful trade deal with the European Union, as reported by AOL Finance. This rollback eases pressure on popular models from brands like BMW, Mercedes, and Volkswagen, boosting competitiveness in the American market amid President Trump's aggressive push to reshape global trade.

However, not all EU sectors are celebrating. Agroreview reports that starting this month in January 2026, 13 Italian pasta companies face a steep additional 92% tariff on top of the standard 15% duty, announced by the US last October. This targets specific importers and could drive up prices for American consumers while squeezing Italian producers already navigating post-Brexit challenges.

Trump's broader tariff strategy continues to ripple across Europe. While the Philippines grapples with a locked-in 19% US tariff on its goods under a reciprocal deal—sparing electronics but threatening GDP growth by 0.1%, per BusinessWorld—the EU remains a focal point. Negotiations aim to prevent escalation, with exemptions preserving some agricultural and auto flows. Economists warn that without further deals, EU exports could face heightened scrutiny as Trump prioritizes narrowing the US trade deficit.

These moves highlight Trump's "America First" playbook: rewarding compliant partners like the EU on cars while punishing outliers in pasta and beyond. For EU businesses, diversification into Asia and the Middle East is urged to mitigate risks.

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