Brussels accelerates negotiations with the US, while Donald Trump threatens 25% tariffs on European automobiles and a new trade crisis.
With the European car industry once again at the center of international trade tensions, European Union is attempting to urgently finalise the legislative framework of the agreement with the United States, before Donald Trump’s threats to impose 25% tariffs on European automobiles translate into reality. Long hours of negotiations in Brussels, crucial trilogues between the European Parliament and Council, pressure on the Commission and open disagreements over safeguard clauses reveal the fragile climate in the EU-US talks. At the same time, Europe is seeking to protect its businesses and exports against the possibility of a new trade conflict, while it remains uncertain whether Washington will fully respect the commitments agreed at Turnberry in Scotland.
The time is pressing and the ferment is intensifying, according to ERTnews.gr. Implementation of the EU-US trade deal in Turnberry remains incomplete, Donald Trump threatens tariffs of 25% on European automobiles, and negotiators in Brussels are rushing to finalise a legislative text that will flesh out the deal signed last year in Scotland.
Objectives
The second trilogue between the European Parliament and the Council on the regulation implementing the EU-US Joint Statement was concluded on Wednesday night (6/5) to Thursday (7/5). Trade Commissioner Maros Sefčovič (Social Democrats, Slovakia) did not hide his fatigue nor the seriousness of the moment: “We have spent almost six hours in an important trilogue on the Tariff Regulation implementing the EU-US Joint Statement. This significant investment of time and effort suggests that we are making significant progress and have already achieved a lot, although of course nothing is agreed until everything is agreed,” he said.
He set three objectives: proving the EU is keeping its commitments, the outcome fully respecting the joint statement, and safeguarding the interests of European business, including tools to allow the Commission to ensure that the US side is also respecting its obligations. At the same time, Maros Sefchowitz reiterated his call for the US administration to honour its own commitments.
The same tone of cautious optimism was echoed by the European Parliament’s chief negotiator Bernd Lang (Social Democrats, Germany), chairman of the Trade Committee. “We have just concluded a constructive second trilogue in which we made good progress on the safeguard mechanism and the review and evaluation of the basic regulation, but there is still a long way to go,” said Lang, expressing Parliament’s determination to preserve “additional safeguards” for citizens and businesses on both sides of the Atlantic. The next trilogue is set for May 19 in Strasbourg.
Trump threatens, Commission won’t back down
The US president’s threat to raise tariffs on European cars from 15% to 25%, citing EU failure to implement the agreement, remains in the background. Commission spokesman Thomas Renier rejected the characterisation, saying “we do not comment or speculate on threats. We are fully committed to the implementation of the joint statement – I will repeat it a hundred times if necessary.”
Commission President Ursula von der Leyen had already stressed since the Armenia summit that “an agreement is an agreement,” recalling that the US also has outstanding obligations.
Both sides aim to close the legislative chapter before the anniversary of the Turnberry agreement at the end of July. But the project remains on a tightrope, as while the European Parliament insists on stronger safeguard clauses, some member states are wary and, of course, it remains to be seen whether Washington retains the same interest in the negotiated deal.
