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Reading: EU US Trade Deal Talks Face 25% Auto Tariff Threat
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PhotoNews Pakistan > Business > EU US Trade Deal Talks Face 25% Auto Tariff Threat
Business

EU US Trade Deal Talks Face 25% Auto Tariff Threat

Web Desk
By Web Desk Published May 7, 2026 2 Min Read
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U.S. and European Union flags are displayed with shipping containers and market charts in the background.
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Brussels: EU-US trade deal talks made progress on safeguards, but negotiator Bernd Lange said there was “still some way to go” as Washington threatened 25% tariffs on EU cars and trucks.

Lange, the European Parliament’s chief negotiator, said lawmakers and European Union governments had concluded a second constructive trilogue on the safeguard mechanism and review provisions of the regulation.

Negotiators are due to meet again on May 19 as they work on legislation to scrap EU duties on US industrial goods and grant preferential access to US farm and seafood products.

US President Donald Trump said on May 1 that he would raise tariffs on EU-made cars and trucks to 25% from 15%, accusing the bloc of failing to comply with the trade deal agreed in July 2025, the Associated Press reported.

EU-US Trade Deal Ratification Under Pressure Due to Trump’s Auto Tariff Threats https://t.co/kPdO8g4Sw5

— WWD (@wwd) May 6, 2026

The European Commission says the July 27, 2025, political agreement with Trump set out tariff and trade terms intended to restore stability and predictability for EU consumers and businesses.

The White House said the agreement included a 15% US tariff rate on EU goods, including autos and auto parts, pharmaceuticals and semiconductors, while the EU committed to broader market access for US exporters.

EU lawmakers want stronger safeguards, including suspension of the deal if the US fails to comply, conditional tariff cuts and an end date for EU concessions on March 31, 2028.

EU governments have shown less appetite for adding those provisions, while some diplomats said the sides remained far apart and may need further talks next month.

German Economy Minister Katherina Reiche, whose country faces heavy exposure to any auto tariff increase, said she was in intense talks with US officials and hoped to resolve the dispute.

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