EU lawmakers and governments are racing to finalize a trade agreement that would eliminate tariffs on U.S. imports after President Donald Trump escalated tensions with his threat to raise EU vehicle duties, but disagreements over protective measures threaten to stall the deal.
In a move announced Friday, Trump ordered an immediate increase in tariffs on European cars and trucks from 15% to 25% this week, citing non-compliance by the EU with terms of a trade pact finalized in Scotland last July.
To avoid further escalation, many European nations are urging swift implementation of legislation that would remove import duties on U.S. industrial goods and grant preferential access to American agricultural and seafood products under the existing accord.
However, despite the agreement being struck nine months ago, the European Parliament and the Council — representing EU member states — have yet to reach consensus on a unified text for duty reductions to take effect.
EU lawmakers are pushing for stricter safeguards, including the automatic suspension of the deal if U.S. obligations are not met, making tariff cuts contingent upon specific actions by Washington, and ending all European tariff concessions by March 31, 2028.
Yet EU governments have shown little interest in adopting such measures, with one diplomatic source noting that negotiations remain at an impasse. Another official stated that further discussions are likely to be needed next month to bridge the gap.
Manfred Weber, leader of the center-right European People’s Party and the largest group in the European Parliament, has called for a final vote on the agreement within the EU assembly by May.
Despite this timeline, analysts say the prospect of robust safeguards is gaining traction among several political factions, which they argue are essential given Trump’s recent tariff threat.
The car duty dispute also overshadowed a Wednesday meeting of G7 trade ministers in Paris.
Germany’s Economy Minister Katherina Reiche, whose nation would face significant impact from the proposed tariffs on vehicles, reported ongoing intensive talks with U.S. officials and expressed hope that they could resolve the challenge.
EU Trade Commissioner Maros Sefcovic confirmed he would travel to Brussels later that day to participate in the negotiations.
