The 15 percent tariff that the US will impose on car imports from the European Union under a new agreement is “burdening” German carmakers, a leading industry association has warned.

“The US rate of 15 percent, which also applies to automotive products, will cost German car companies billions a year and put an additional burden on them,” said Hildegard Müller, president of the German Automotive Industry Association (VDA).

US President Donald Trump and European Commission President Ursula von der Leyen reached an agreement on Sunday night that provides for a basic tariff rate of 15 percent — a measure aimed at avoiding a full-scale trade war.

The new tariff is lower than the 25 percent that Trump imposed in April but significantly exceeds the usual rate of 2.5 percent previously applied.

“What is important now is what the agreement will look like and how reliable it is,” Mueller said.

Reactions to the deal in Europe have been cautious so far.

German Chancellor Friedrich Merz welcomed the deal, saying it had prevented “an unnecessary escalation in transatlantic trade relations.” For her part, European Commission President Ursula von der Leyen acknowledged: “15 percent should not be underestimated, but it was the best we could negotiate.”

France’s European Affairs Minister Benjamin Haddad called the agreement “unbalanced,” and Germany’s industry federation BDI warned it would have “significant negative consequences.” | BGNES, AFP