EU Finalizes Trade Deal with U.S.; USMCA Joint Review Set for July 1
The European Union has completed the final legislative step to implement its trade agreement with the United States, with member states formally approving regulations that lower tariffs on a broad range of U.S. industrial products and expand access for American agricultural goods and seafood. The move allows the agreement to take effect before President Trump’s July 4 deadline, after earlier delays caused by political tensions and legal challenges to parts of the administration’s tariff policy. As part of the deal, the U.S. lowered tariffs on European cars and parts to 15%.
USMCA
It was announced this week that Mexico, Canada, and the United States will formally begin the first joint review of the U.S.-Mexico-Canada Agreement (USMCA) with a virtual meeting on July 1, marking the start of what is expected to be a lengthy negotiation process rather than an immediate decision on the pact’s renewal. The three countries are expected to present their positions and discuss next steps, with more detailed negotiations scheduled to begin in Mexico City on July 20. Under the agreement’s provisions, the three partners can either extend it for another 16 years or move to annual reviews for the next 10 years. Any partner can also withdraw from the agreement with six months’ notice. Automotive rules of origin are expected to be a significant focus in the discussions for the U.S., which is seeking stricter rules of origin for vehicles to qualify for preferential trade treatment.
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ICYMI
In case you missed it, AIADA Chairman Mike Darrow recently joined CBT News to discuss the threat posed by Chinese vehicles to the U.S. auto industry. Check it out!
Quotes of the Week
“The vehicles … are priced artificially low. The warranties are artificially long. The incentives are artificially high. And they are buying market share. It’s a predatory competition.” -Mike Darrow, AIADA Chairman, on the threat posed by Chinese vehicles (CBT News)
“With this milestone, we are days away from fulfilling our commitment to remove tariffs on imports of US industrial goods.” -European Commission President Ursula von der Leyen (Politico)
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Honda of Short Pump, Great Lakes Auto Group’s first Virginia dealership, celebrated its grand opening with a surprise $25,000 check to Goochland County Fire-Rescue.
We want to hear more about how you are supporting your local community – contact us on X @AIADA_News and use the hashtag #DealersDoGood.
You Auto Know will be on hiatus next week in observance of the July 4th holiday. We’ll be back soon with all the news from Washington, D.C. that You Auto Know about!