EU Member States Push for Fast-Track US Trade Deal as Trump Threatens 25% Auto Tariffs
EU member states are pressing for rapid implementation of the bloc's side of a trade agreement with the United States, as President Donald Trump threatens to raise tariffs on European cars and trucks to 25%, according to Reuters.
Negotiations between European Parliament and Council representatives are set to resume on legislation designed to lower EU duties on American industrial goods, though the Parliament is seeking to attach several safeguards to any final deal.
Trump issued the tariff warning on Friday, citing the EU's failure to honour commitments made at his Turnberry golf resort in Scotland in July 2025 — specifically, the removal of EU levies on imported US industrial goods. The proposed legislation has already been suspended twice by the European Parliament: first after Trump threatened tariffs on European allies that had not supported his bid to acquire Greenland, and again following the introduction of fresh US import levies.
Diplomats indicate that EU member states broadly favour a swift resolution between Parliament and the Council. Manfred Weber, leader of the centre-right European People's Party — the Parliament's largest grouping — called for negotiations to conclude quickly enough for Parliament to give its final approval this month, though that timeline was acknowledged as ambitious.
Bernd Lange, chair of Parliament's trade committee and its lead negotiator, said Trump's conduct was “unacceptable” and argued that this made the case for additional safeguards stronger. “You can't keep threatening your closest allies and then expect them to roll over,” Lange told reporters in Brussels.
Separately, the prospect of a weakened USMCA is adding pressure across the automotive sector. Several carmakers, including Nissan, Hyundai and Toyota, cautioned last month that affordable entry-level vehicles could disappear from the US market if the US-Mexico-Canada Agreement is not renewed or is substantially revised. Those manufacturers are among the few still offering budget-friendly smaller cars in the US, as domestic producers have largely shifted their focus to SUVs and pickup trucks.
Industry executives warned the administration that without significant tariff relief on vehicles and components, some overseas manufacturers may no longer find it viable to produce and sell lower-priced cars in the American market.
Reactions from the ground
“This is a classic Trump move — throw a tariff tantrum and watch everyone scramble,” said Marta Kowalski, a trade analyst based in Warsaw. “But the EU can't just cave. If we give in now, he'll just come back with more demands next quarter.”
Jean-Luc Moreau, a French auto parts supplier in Lyon, was more measured: “We need a deal, yes, but it has to be balanced. If we remove all duties without guarantees, European manufacturers will be the ones paying the price — literally.”
Elena Vasquez, a German small-car dealer in Stuttgart, was blunt: “My customers can't afford a €40,000 SUV. If the cheap models disappear because of US tariffs, it's not just an American problem — it's a global one. Someone in Brussels needs to wake up.”
This article was originally published by Just Auto, a GlobalData owned brand.