EU and US trade negotiators are meeting today to try to avert a trade clash after President Donald Trump threatened to raise car tariffs from 15% to 25%. An EU official told Euractiv the bloc remains committed to transatlantic cooperation but will defend its interests if duties are imposed. The dispute follows tensions sparked by criticism from German politician Friedrich Merz about the war in Iran, which led to Trump proposing a partial troop withdrawal from Germany; Merz has since softened his tone.
EU and US Rush to Defuse Trade Rift After Trump Threatens 25% Car Tariffs
A chart showing US trade in goods with the EU.
EU and US trade negotiators are meeting today in a last-ditch effort to head off a new transatlantic trade confrontation after US President Donald Trump threatened to raise car tariffs from 15% to 25%.
Brussels and Washington reached a trade agreement last year, but Trump said on Friday that the EU was not complying with the deal and vowed to hike duties on imported cars. An EU official speaking to Euractiv said the bloc remains committed to the partnership while making clear it will defend its interests if higher tariffs are imposed.
What’s at Stake
The negotiations aim to prevent an escalation that could disrupt auto supply chains and consumer markets on both sides of the Atlantic. Officials on both sides say they prefer a negotiated solution to unilateral tariffs, but both also appear prepared to protect domestic industries if talks fail.
“We remain committed to the relationship with the United States, but we will act to protect European industry and workers if necessary,” an EU official told Euractiv.
Tensions escalated after German politician Friedrich Merz criticized the war in Iran last week. That criticism reportedly prompted President Trump to propose withdrawing some American troops from Germany, raising fresh concerns about NATO defense ties. Merz has since adopted a more conciliatory tone.
The outcome of today's talks could determine whether the dispute remains a short-lived diplomatic flare-up or becomes a longer-running trade and security headache for both sides.
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