The European Union to provide a less tariff for American cars

Open the newsletter to watch the White House for free

Your guide to what the American elections mean 2024 for Washington and the world

The European Union will provide a decrease in customs tariffs on US car imports as part of a deal to avoid a trade war with Donald Trump, according to senior legislators.

Bernd Lang, who heads the Commercial Committee in the European Parliament and is familiar with talks on how to remove tensions with the White House, told the Finanish Sint an accusation by the United States.

“We can try to make a deal before the costs and tariffs are escalated,” Lang said. He added that the bloc will provide to buy more natural gas and liquefied military equipment from the United States, “in addition to looking forward to a decrease in the customs tariff for cars.”

The European Union hopes to avoid a harmful trade war by finding ways to reduce the surplus of trade with the United States, which Trump often killed as a reason for punitive measures. During the first period of Trump, Brussels reduced the tariff of the mass on the Karakand and offered the purchase of more LNG and soybeans, which limited the trade conflict on steel and aluminum.

Brussels officials said the European Union car supports this step. The sector fears that Trump will achieve its threat to impose a tariff after complaining that the Europeans “do not buy our cars, do not take our agricultural products, do not take anything almost and take everything from them.”

The low -car tariff – the decision made by the European Commission as the representative of the bloc on commercial policy – applies to China and other countries under the rules of the World Trade Organization.

“We have linked the definitions of cars in the World Trade Organization by 10 percent, but let’s say, to show the world that we have fair relationships, which may be possible to reduce,” Lang said.

European Union officials trust that imports from China will not rise, given that the bloc has already imposed a tariff of up to 35 percent on electric cars in the country on the basis that they are fairly supported by Beijing.

Oliver Zeep, CEO of BMW, has called for a decrease in definitions of cars, and Mercedes president first said he wanted a “big deal” with Trump.

European Union officials said the main countries in the automotive industry, including Germany, were not expected to oppose Berlin this step.

In 2022, the European Union exported 738,436 vehicles to the United States, at a value of 37.4 billion euros. Only 271476 imported from the United States, at a value of 8.7 billion euros.

Lang warned that if the talks fail, the European Union will restore a new weapon that allows it to target the United States of technology and financial tendencies. The arc control tool was created after Trump’s first term, to deal with countries that use economic pressure to change local policy.

“It is sometimes important to have a weapon on the table,” said Lang.

FT said this week that the European Commission is preparing to use the procedure for the first time.

Lang said that Trump is likely to use definitions to try to force the European Union to reduce regulations and remove taxes on online companies such as Meta, X and Google.

“So ACI plays into effect so that we can also use this tool to process these large technology companies.”

He said that Brussels can suspend intellectual property rights, for example, allowing free use of programs, and applying duties to broadcasting services and other digital platforms.

He said that ACI will require about six months to publish, as the European Union will have to calculate the damage to its industries and obtain state support for the majority.

But he said that the governments noted how rapid revenge by Canada and Mexico to the 25 percent definitions imposed on them pushed Trump to suspend them for 30 days.

“We, of course, are stronger than Canada or Mexico. Thus, I think we are able to defend our economic interests.”

The committee refused to comment.