EU Appliance & Audio Brands Breathing Easy After Trump Cuts Tariff Deal

European appliance manufacturers, along with several EU audio companies are breathing easy this morning after it took just 75 minutes for President Trump to cut a 15% tariff deal with the EU.

Several major European appliance brands including Electrolux BSH the maker of Bosh, NEF and Gaggenau appliance ran the real risk of losing market share in the USA a move that could have seen prices rise in Australia.

Trump who met European Commission President Ursula von der Leyen in Scotland over the weekend resulting in the EU agreeing to buy $750 billion in American energy products, invest $600 billion in new money in the US and purchase additional US military equipment, according to the terms of the preliminary agreement.

Tariffs on many American exports will drop to zero.

“Today’s deal creates certainty in uncertain times . . . for citizens and businesses on both sides of the Atlantic,” von der Leyen said, adding that the 15 per cent US tariff would apply to European appliances, audio products cars, pharmaceuticals and semiconductors — important products for EU brands.

Higher US tariffs on EU appliance manufacturers, particularly those related to steel and aluminium, would have increased production costs and weaken their competitiveness in the US market.

European appliance Companies that we have spoken to have said that US tariffs have created a challenging environment for EU appliance manufacturers, forcing them to navigate higher costs, adjust to a changing market, and potentially face retaliatory measures.

Duties on most European goods being shipped into the US rise to 15% this includes the likes of Loewe TVs, and European audio brands including Bang & Olufsen (Denmark), Dynaudio (Denmark), Focal (France), Naim (France).

“I think it’s the biggest deal ever made,” Trump proclaimed when he announced the deal alongside President Ursula von der Leyen.

Von der Leyen pointed out that the only real concession from the Americans was that Trump would not impose 30% tariffs as he had threatened a move that some claim would have “crippled” European appliance manufacturer sales.

The 27-member bloc is America’s biggest trading partner if taken together, with total trade hitting US$1.97 trillion last year. The US trade deficit for goods was US$235 billion.

The deal avoids a trade war between two economies that account for about 44% of the world’s gross domestic product — less than a week before steep tariffs were set to come into effect.

Before announcing the agreement, both Trump and Von der Leyen put the odds at making a deal at 50-50.

The European leader had flown to Scotland to meet Trump at his Turnberry golf course, where the president spent the morning playing with son Eric.

One of the goals for Europe was to bring down US tariffs on automobile exports.

Trump imposed a 27.5% rate on autos in April.

Before announcing the deal, Trump signalled that “pharmaceuticals won’t be part” of the deal he was planning because his administration is planning a more aggressive approach to reshore manufacturing in that sector. Pharmaceuticals are Europe’s largest export to the US. Trump threatened 200% tariffs on those products last month.

Trump also pointed out that that his steel and aluminium tariff policy is “staying the way it is,” meaning it would remain at the 50% worldwide rate that Trump announced in June.

So far, the US president has cut preliminary tariff deals with the UK, Vietnam, Japan, Indonesia and the Philippines. The president teased that his team recently locked down another deal but didn’t specify which country.