Trump's Delayed Tariff Cuts on EU, Japan, and South Korean Cars Cost Japanese Automaker $680,000 Per Hour

Brennan, Director of Trade and Economic Policy at UK Steel, stated that due to the uncertainty surrounding the 25% U.S. import tariff, most members have seen a decline in orders from the U.S. One British steel producer, known for its highly competitive pricing, warned that if U.S. steel tariffs are not reduced to zero, they will shut down their factory by the end of the year.

"There is growing concern that finalizing a steel agreement is no longer a priority for either the U.K. or U.S. governments, and the willingness to reach a deal may be wavering on both sides," Brennan said last week.

Similar to the U.K., dissatisfaction and economic losses are mounting in Japan, the EU, and South Korea. Over the past month, these three regions have announced similar measures: after three months of negotiations, Trump’s comprehensive tariffs took effect on August 7, with Washington granting temporary relief for imported cars from Japan, the EU, and South Korea.

Unlike the U.K., these major auto-exporting regions—Japan, South Korea, and the EU—also face 50% U.S. tariffs on their steel and aluminum products. They are still waiting for concessions from Trump, while the U.S. continues to impose a 25% tariff on imported Toyota, BMW, Hyundai, and other cars, citing national security concerns.

"We are still seeing losses, and the losses continue. We hope the U.S. will issue an executive order as soon as possible," said Japan’s chief trade negotiator, Akira Akazawa, on August 15, referring to the country’s automotive industry.

Former EU Trade Commissioner and current non-resident fellow at the Peterson Institute for International Economics, Cecilia Malmström, warned that any delays might be purely administrative.

However, she added, "If no action is taken, the European Commission will face immense pressure. Industry players, especially automakers from Germany, Italy, France, and Sweden, may demand retaliatory measures or some form of action. The EU-U.S. agreement remains vague on many points, as do other agreements, so we may see endless negotiations and numerous disruptions."