Europe's Carmakers Still Nervous Despite EU-US Trade Deal

Vintage Volkswagen Beetle cars. The European auto industry has reacted to an US-EU tariff deal with relief and concern (Credit: AFP)

Europe's auto industry is relieved that the EU-US trade deal reduces short-term uncertainty but many, particularly in the struggling German sector, remain deeply worried about the long-term impact.

After months of tariff turbulence that threatened to escalate into a trade war, US President Donald Trump and EU chief Ursula von der Leyen struck the agreement Sunday that will see EU exports taxed at 15 percent.