The European Union has planned a new strategy to avoid tariff hikes in the global trade network.
EU countries are largely pushing for faster implementation of the trade deal they struck with the United States last year to offset the threat of higher auto tariffs, according to EU diplomats.
Deputies to the European Parliament and Council, the body representing EU governments, will resume negotiations on Wednesday on legislation to reduce EU duties on imported US goods, with the EU Assembly looking to establish several safeguards.
It came as US President Donald Trump said on Friday he would raise tariffs on EU cars and trucks to 25% in the coming week because the EU was not adhering to the terms of the agreement reached at his Turnberry golf resort in Scotland in July.
Nine months later, the EU still has not lifted tariffs on imported US industrial goods, as agreed by both sides. Legislation to do so was twice blocked by the European Parliament after Trump threatened to impose new tariffs on European allies that do not support his proposed annexation of Greenland and his new import levy.
Furthermore, German Chancellor Friedrich Merz, whose country is likely to be most affected by the car tariff increase, told broadcaster ARD: “The Americans have finalized it, and the Europeans have not – and that’s why I hope we can reach an agreement as quickly as possible.”
Diplomats said EU members largely want a quick agreement between Parliament and Council on implementing the bloc’s side of the agreement.
Manfred Weber, head of the center-right European People’s Party, the largest group in the EU Parliament, also said negotiations must be completed quickly to allow Parliament to give its final approval this month.
Bernd Lange, who chairs parliament’s trade committee and will lead talks at the EU Assembly on Wednesday, spoke as he believes it will be an ambitious time.
Ignacio GarcÃa Bercero, a senior fellow at the think tank Bruegel who previously headed EU trade negotiations, said the tariff threat appeared to be partly a move to put pressure on EU parties to reach a deal.
“The EU should take the necessary time to reach an agreement, not come under pressure or move towards escalating tensions,” he said, adding that applying pressure could be counterproductive.
