EU Makes Progress on US Trade Deal Approval; EV Registration Fee Included in Transportation Bill
The European Union (EU) reached a compromise agreement to implement its long-delayed trade deal with the United States, likely avoiding President Trump’s threatened 25% tariff on European automobiles. The breakthrough came after months of internal EU disagreements and increasing pressure from Washington. The final agreement includes safeguards allowing the EU to suspend portions of the deal if the U.S. does not reduce tariffs on European steel and aluminum by the end of 2026, as well as protections for domestic industries facing harmful import surges. A Parliament trade committee will next vote on the package June 2, with a final vote expected during the European Parliament’s June 15-18 plenary session, well ahead of President Donald Trump’s July 4 deadline for the EU to finish implementing the deal or face higher tariffs.
EVs
House lawmakers introduced bipartisan legislation that would impose a new annual fee on electric vehicles and plug-in hybrids to help fund federal road and highway repairs. Under the proposal, EV owners would pay a $130 annual fee, while plug-in hybrid owners would pay $35, with both fees gradually increasing over time as part of a broader five-year, $580 billion highway infrastructure package. Lawmakers argue the measure is needed because EV drivers do not contribute to the federal gas tax, which has traditionally funded the Highway Trust Fund and road maintenance projects.
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Quotes of the Week
“The United States welcomes the progress made by the European Union toward implementing the Turnberry Agreement that stands to deliver historic market access for American exporters.” -Jamieson Greer, U.S. Trade Representative (Politico)
“The lack of known trade certainty is like kryptonite.” -Michael Robinet, Vice President of Forecast Strategy, S&P Global Mobility (Automotive News)
ICYMI
In case you missed it, Jennifer Safavian, President & CEO of Autos Drive America, discussed the importance of the renewal of USMCA for the U.S. auto industry on a recent episode of The Trade Guys podcast. Check it out!
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Jim Taylor Auto Group in Louisiana donated proceeds from its annual Memorial Sales Event to the Tarber Braddock Foundation, which seeks to better the community through random acts of kindness, including scholarships, sponsorships and surprise gifts. The Memorial Sales Event has become a lasting way to serve the community while honoring the memory of founder Jim Taylor, who passed away in 2014 and has now raised more than $246,000 for local nonprofits. (h/t ASOTU More Than Cars)
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 during the Memorial Day Congressional District Work Period, but we’ll be back the week of June 1 with all the news from Washington that You Auto Know about.