US-EU trade deal could be amended, Canada drops several retaliatory tariffs

The Associated Press reports that European Parliament Trade Committee Chair Bernd Lange has “doubts” about a trade deal the EU has reached with the U.S., noting that it could be amended.

According to a joint statement from U.S. President Donald Trump and European Commission President Ursula von der Leyen, the U.S. will impose a “clear maximum, all-inclusive” tariff rate of 15% on most EU exports. The EU agreed not to impose tariffs on U.S. cars and industrial goods.

The 15% ceiling would apply in tandem to vehicles and vehicle parts, with the EU initiating the procedures for tariff reductions vis-à-vis U.S. products, the statement says.

“A lot of questions are there, and I guess there will be some amendments,” said Lange, according to the AP. “[M]yself and also some colleagues of mine have doubts about the deal.”

The AP adds, “The deal has had a mixed reception in Europe, with business associations saying it imposes high costs that will impede exports to the U.S. Von der Leyen says that it will lower a painful 27.5% tariff on autos and bring stability and predictability for businesses. Lange however, said ‘there is no security or predictability,’ citing a U.S. decision two weeks after the deal was struck to include some 400 different goods containing steel, such as pumps and motorcycles, under a 50% steel and aluminum tariff instead of the 15% tariff.”

CNBC reports that the European Commission said the proposals would “ensure tariff relief by the U.S. for the vital EU automotive sector starting retroactively from 1st of August,” which built on a US-EU trade deal announced in July by Trump and European Commission President Ursula von der Leyen.

Reuters reports that Swedish EV automaker Polestar has reported a significantly increased Q2 net loss after tariffs and “intensifying price pressure” led to an impairment charge.

“Polestar reported a net loss of $1.03 billion for the quarter ended June 30, compared with a loss of $268 million a year earlier,” the article states. “The company slashed the recoverable value of the Polestar 3 to $25 million, leading to a $739 million impairment charge. Sweden-based Volvo Cars, which produces the Polestar 3 in its South Carolina factory, also booked a similar impairment charge in the second quarter related to its ES90 and EX90 due to tariffs and launch delays.”

The impairment charge also sent Polestar’s U.S.-listed shares down 11%.

In Canada, Prime Minister Mark Carney has dropped several retaliatory tariffs to match U.S. exemptions under the United States-Mexico-Canada (USMCA) agreement, according to CBT News.

The decision was announced on Friday. CBT News noted that while more than 85% of Canadian trade with the U.S. remains tariff-free, tariffs on steel, aluminum, and automobiles will remain as negotiations with the Trump Administration continue.

“President Donald Trump praised discussions with Carney, noting the U.S. aims to protect its businesses while maintaining strong trade ties with Canada and Mexico,” the article states. “Carney and Trump spoke by phone on Thursday, followed by Carney’s Cabinet meeting on Friday before the announcement… Most imports from Canada and Mexico remain protected under the USMCA, which continues to play a critical role as more than 75% of Canada’s exports go to the U.S.

“The tariff realignment balances the need to protect key domestic industries while maintaining broad access to the U.S. market, highlighting the ongoing strategic navigation of trade relations amid political debate.”

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