EU and US Negotiators Meet on Tariff Threats to European Cars
EU and US trade officials are convening for discussions aimed at resolving tensions after President Trump threatened to increase tariffs on EU-made cars. The threats stem from allegations of EU non-compliance with a bilateral trade agreement signed last year. European leaders expressed readiness to respond if the hikes are implemented.
EuronewsThe discussions come after Trump stated last week that the EU is not complying with the terms of their trade deal, vowing to increase duties from 15% to 25%. Multiple sources confirm the meeting aims to finalize implementation details and prevent further disruptions.
The trade agreement, known as the Turnberry agreement, was signed last year and caps US tariffs on EU goods at 15%. Trump alleged in a social media post that the EU is failing to adhere to the deal, though he provided no specific details. EU officials have defended their compliance, stating they are in the final stages of implementing key pillars to eliminate tariffs on various American products.
and Preparations European Commission President
Ursula von der Leyen stated during a press conference in Yerevan on Tuesday that the bloc is prepared for every scenario regarding potential tariff increases. She emphasized the EU's commitment to its legislative processes and the ongoing efforts to fulfill the agreement.
A diplomatic source indicated there is no cause for alarm over the pace of implementation. French President Emmanuel Macron, speaking at a separate event in the South Caucasus, said the EU has tools to respond to any tariff threats that materialize.
Questions arose about whether he referred to the EU's anti-coercion instrument. Former EU trade commissioner Catherine Ashton highlighted the need for consistency in trade policy amid broader geopolitical tensions. Merz has since adopted a more conciliatory tone.
An EU official affirmed the bloc's dedication to the transatlantic relationship but readiness to protect its interests. These trade frictions occur against a backdrop of other international events, including Russian strikes in Ukraine that killed at least 26 people on Tuesday, as reported by Kyiv.
The motion passed with 281 votes in favor and four against, amid ongoing economic challenges like high inflation and a budget deficit.
Ashton warned that global developments, particularly in the Middle East, necessitate cooperation between the EU and US. She stressed that collective action on trade could help address additional challenges. Trump, meanwhile, urged Iran to make a deal, stating he did not want further conflict.
The EU Parliament's Committee on International Trade is scheduled to hear from senior trade official Sabine Weyand today on the current state of EU trade. Separately, Ukrainian mayor Vadym Boychenko will address the Committee on Regional Development about governing an occupied city.
Transatlantic defense ties have also been strained, with worries over US troop presence in Europe following recent criticisms. Negotiators hope today's meeting will smooth out remaining issues in the trade deal before threats escalate further.
Key Facts
Story Timeline
5 events- Today
EU and US trade negotiators meet to address tariff threats.
2 sourcesEuronews · Semafor - May 3, 2026 — 3 days ago
President Trump threatens to raise tariffs on EU cars to 25% via social media.
2 sourcesEuronews · Semafor - May 4, 2026 — 2 days ago
Ursula von der Leyen states EU is prepared for any scenario in Yerevan press conference.
1 sourceEuronews - May 4, 2026 — 2 days ago
Emmanuel Macron says EU has tools to respond to threats.
1 sourceEuronews - Last year
EU and US sign the Turnberry trade agreement capping tariffs at 15%.
2 sourcesEuronews · Semafor
Potential Impact
- 01
EU activates anti-coercion tools in response to US tariff hikes.
- 02
Strained transatlantic defense ties due to troop withdrawal considerations.
- 03
Increased costs for EU car exports to the US market.
- 04
Delayed implementation of tariff eliminations on American products.
- 05
Broader cooperation on global issues like Middle East tensions.
Transparency Panel
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