Trump administration officials announced the terms of an agreement that would reduce tariffs on vehicles and parts imported from European Union nations to 15%, a 10% reduction that follows months of tense negotiations.

The White House raised tariffs on most EU goods to 25% starting April 1. Last week, the administration finalized a similar deal with Japan, reducing tariffs on vehicles to 15% and demanding new investments in American enterprises in return.

EU-built vehicles previously were subject to a 2.5% tariff.

Kelley Blue Book’s Sean Tucker reports one of Japan’s Pacific Rim neighbors may be next in line for a new trade deal, putting additional pressure on U.S.-based factories to domesticize production.

“Reports say South Korean negotiators are aiming for a similar deal in talks with the U.S. That has U.S.-based automakers worried,” Tucker writes. “Many moved production of some cars and parts to Canada and Mexico in recent years, encouraged by trade policy from past presidential administrations. Now, they’re paying more to import cars and parts than many foreign competitors.”

Read more at Kelley Blue Book