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US Slashes EU Auto Tariffs to 15%

The Trump administration on Wednesday formally implemented its trade agreement with the European Union, confirming that a reduced 15% duty rate for EU automobiles and auto parts took effect August 1, ending weeks of uncertainty for European automakers.

The Commerce Department and the US Trade Representative’s office amended the tariff schedule to implement the framework agreement reached with the EU in July, according to a Federal Register notice published Wednesday. The deal lowers tariffs from the previous 25% rate and makes the reduction retroactive to August 1.

“For EU autos and auto parts, the tariff rate dropped to 15% from 25% effective August 1, easing anxiety in an industry that had been waiting for the long-delayed confirmation,” according to the Federal Register notice.

You can read more on the matter here.

What’s going on?

• Federal Agencies Get Access to Musk’s Grok AI for 42 Cents Under New Deal (theDeepDive)

• U.S. consumer spending, inflation rise in August (Globe)

• More Trump Tariffs Coming: Pharmaceuticals, Trucks, Home Fixtures (theDeepDive)

• Trump’s 100% Pharmaceutical Tariffs Won’t Apply to the EU and Japan (Bloomberg)

• Canada Post Shutdown As Union Workers Strike On Service Cuts (theDeepDive)

• Sinclair to end boycott of Kimmel show on its ABC stations Friday (Reuters)

• Germany Signals Long-term Interest in Canadian Natural Gas Despite Climate Goals (theDeepDive)

• Trump Pledges That Others Will Be Indicted After Comey (WSJ)

• Russia Extends Petrol Export Ban Through 2025 (theDeepDive)

• The global wealthy are lining up for Trump’s $1 million Gold Card after price cut (CNBC)

• Nova Scotia Introduces Legislation to Cut Red Tape (theDeepDive)

What’s the latest?

• Budgetary Deficit: Canada ran a $7.8B deficit from April to July 2025, slightly higher than the $7.3B shortfall a year earlier, per the Finance Department. Revenues rose to $163.4B (up 4.5% on higher taxes), while program expenses climbed to $151.3B from $146.9B. Debt charges dipped to $18.6B from $18.7B, and net actuarial losses fell to $1.3B from $2.5B.

• Markets: U.S. stocks rose Friday after inflation matched forecasts, easing concerns about Fed policy. The S&P 500 gained 0.2%, the Dow rose 0.5%, while the Nasdaq slipped 0.1% on Big Tech weakness. Inflation hit 2.7% in August, up from 2.6%, but in line with expectations, keeping hopes alive for more Fed rate cuts. Tariff announcements by Trump added uncertainty, hitting some home furnishing stocks, while Paccar jumped 5%. Abroad, Europe climbed while Asia slumped; Treasury yields held at 4.18%.

• Economic Growth: Canada’s GDP rose 0.2% in July, the first growth in four months, led by goods-producing industries (+0.6%) such as mining (+1.4%) and manufacturing (+0.7%). However, steel production fell 19% due to U.S. tariffs, and services grew only 0.1%. Early estimates show 0% growth in August, signaling fading momentum. With Q2 GDP contracting 1.6% annualized, economists expect the Bank of Canada, which just cut rates to 2.5%, to lower rates again before year-end.

• Oil & Gas : U.S. oil and gas rigs rose by 7 to 549 last week, the highest since June, marking a fourth straight weekly gain. Oil rigs climbed to 424, their highest since July, while gas rigs slipped to 117, the lowest since July. Despite E&Ps planning a 4% capex cut in 2025, the EIA projects record output: crude rising to 13.4M bpd and gas to 106.6 bcfd. Higher 2025 gas prices (+61%) are expected to drive drilling after a 2024 decline.

• Student Loan: A backlog of 74,510 PSLF Buyback applications is delaying student loan forgiveness for public service workers, up from 65,448 in June. In August, the Education Dept. processed just 5,600 requests, leaving borrowers waiting months for determinations. The Buyback program, launched in 2023, lets workers retroactively “buy back” missed qualifying months, but staffing cuts under Trump have worsened delays. Over 1M repayment plan applications are also pending.

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The stock market and stuff

• Short Seller Report Targets Aya Gold & Silver, Claiming Inflated Resource Estimates (theDeepDive)

• ByteDance in line for 50% of profits from $14bn TikTok US spin-off (FT)

• Canada’s Per Capita GDP Falls as Economic Growth Stagnates (theDeepDive)

In the juniors

• Gold Exposes What Money Printing Did to the Middle Class | Luke Norman – US Gold Corp (theDeepDive)

• Gold’s New Paradigm! | Shaun Heinrichs – 1911 Gold (theDeepDive)

• New Found Gold Assays 64.8 g/t Gold Over 6.7 Metres In Channel Sampling At Iceberg (theDeepDive)

FULL DISCLOSURE: Northern Superior is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Northern Superior. The author has been compensated to cover Northern Superior on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.