Brussels (Brussels Morning Newspaper) – The European Union stated that it hasn’t made any specific offer yet to lower tariffs on imported US cars as it operates to avoid a trade spat with President Donald Trump.
In a questions and answers session on the US reciprocal tariff policy, the European Commission said that “any tariff reductions must be mutually beneficial and negotiated within a fair and rules-based framework.”
As reported, European Commissioner for Trade Maros Sefcovic is also heading to the US for a gathering with Trump’s commerce secretary, Howard Lutnick, his trade representative candidate Jamieson Greer, and Kevin Hassett, Trump’s chief economic adviser. The arrangement was affirmed by commission spokesman Olof Gill.
How is the EU responding to Trump’s trade demands?
The European Commission noted that the US inflicts a 25% tariff on pickup trucks. It is the largest component of the US auto market, around one-third of all vehicle sales. The EU also pointed out that despite Trump’s objections to a massive trade deficit with the EU, when both goods and services are factored in, the EU operates a “small” surplus with the US of €48 billion, or 3% of total US-EU business.
As part of a proposal to boost the bilateral collaboration, the EU has stated it’s ready to import more liquefied natural gas and possibly to buy more weapons from the US. “The EU is ready to find mutually beneficial solutions with the US on tariffs,” the commission stated.
During his announcement regarding reciprocal tariffs last week, Trump expressed the European Union had already reduced its tariffs on cars. While the EU stated that’s not the case, the remark indicates the issue of those levies has been on his agenda. In addition, Trump put 25% tariffs on imports of steel and aluminum and drifted higher auto levies.
Trump has been insisting that the European Union lower tariffs for US cars, which are presently at 10%, compared with the US’s 2.5% tariff level.
