EU faces pressure to fast-track US trade deal as Trump threatens higher car tariffs

The European auto industry is once again under pressure after President Donald Trump said he would raise tariffs on EU cars and trucks to 25% this week. The warning has pushed Brussels to speed up trade talks, with lawmakers and governments trying to remove duties on US goods while still protecting European interests.

Trump said on Friday that the increase would take effect because the EU was not complying with the terms of a trade deal struck in Scotland last July. The move has raised concern across Europe, especially in countries with major vehicle exports to the US market.

Auto sector under strain

The tariff threat is being watched closely by carmakers, suppliers and governments that rely on vehicle exports. Germany, in particular, would be among the hardest hit if the higher duty is imposed. That has made the auto industry one of the biggest reasons for the EU to move quickly on the wider trade package.

EU countries want the deal implemented without delay. Under the agreement, the bloc would remove import duties on US industrial goods and give preferential access to American farm and seafood products. In return, many governments hope to avoid a damaging escalation in car and truck tariffs.

Safeguards slow the process

The problem is that the deal still needs a common text agreed by the European Parliament and the Council, which represents EU governments. That step has become difficult because lawmakers want stronger safeguards before approving tariff cuts.

Their proposals include suspending the deal if the US fails to comply, linking tariff reductions to US action, and ending EU tariff concessions completely on March 31, 2028. Governments, however, have shown little interest in including such conditions.

One EU diplomat said there was little appetite for those additions, while another said the two sides remained far apart and more talks would likely be needed next month.

Pressure rises in Brussels

The issue was also hanging over a G7 trade ministers’ meeting in Paris on Wednesday. German Economy Minister Katherina Reiche said she was in intense talks with US officials and was hopeful they would “solve this challenge.''

EU Trade Commissioner Maros Sefcovic said he would head to Brussels later in the day to join the negotiations. Manfred Weber, president of the European People's Party, said he wanted a final vote in the European Parliament in May, though that now looks harder after Trump’s latest threat.

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