NAIROBI, Kenya – Europe’s car exporters remain in limbo over U.S. import tariffs despite a trade deal last month, the head of global car carrier Wallenius Wilhelmsen has told Reuters.
The U.S. and European Union reached an agreement in late July to cut tariffs on most European goods, including cars, to 15%.
The rate had been set to rise to 27.5% after U.S. President Donald Trump’s tariff hike earlier this year.
But while the new 15% levy has taken effect for other products, it has yet to be applied to cars — meaning exporters such as BMW, Mercedes-Benz and Volvo Cars are still paying the higher rate.
“The absence of an executive order from Trump lowering the autos tariff has left the industry holding its breath,” said Wallenius CEO Lasse Kristoffersen after the company’s quarterly results. “So far we actually do not know exactly what the tariff level will be. Our customers do not know either, so it is too early to say what they’ll do.”
The uncertainty has already shifted shipping patterns. Earlier this year, carmakers rushed to send vehicles to the U.S. ahead of the 27.5% tariff hike.
But Kristoffersen said the opposite occurred at the start of the second quarter, with manufacturers holding back exports before volumes picked up later in the period.
Wallenius Wilhelmsen operates one of the world’s largest fleets of car carriers, making it a key link between European automakers and the U.S. market.
Until the White House signs off on the lower tariff rate, the sector faces the risk of further last-minute changes to trade conditions — a scenario that could disrupt production schedules and shipping flows in the months ahead.
