Unlock the White House Watch newsletter for free
Your guide to what the 2024 US election means for Washington and the world
The EU is considering cutting tariffs on US car imports in an effort to avoid a trade war with Donald Trump, according to Bernd Lange, head of the European parliament’s trade committee. The bloc is willing to reduce its 10 per cent import tax to closer to the 2.5 per cent charged by the US.
Lange mentioned that the EU is looking to de-escalate tensions with the White House by offering to purchase more liquefied natural gas and military equipment from the US, as well as lowering tariffs for cars. This move is aimed at addressing Trump’s concerns about the trade surplus with the EU.
The European Commission, representing the EU on trade policy, is considering reducing car tariffs not only for the US but also for China and other countries under WTO rules. This decision is supported by the EU car industry, with key players like BMW and Mercedes expressing their desire for a trade deal with Trump.
If negotiations fail, the EU is prepared to use an anti-coercion instrument to target US tech and financial companies. This measure could involve suspending intellectual property rights and imposing duties on digital platforms.
Overall, the EU is taking proactive steps to avoid a trade war with the US and protect its economic interests in the face of escalating tensions.
The European Commission has not commented on these developments.