The European Union is negotiating a trade framework with the U.S. aimed at shielding its auto industry from steep tariffs, including the 25% import duty imposed by Washington in April. Talks are advancing quickly, with options on the table such as import quotas, reduced tariffs, and export credits. The latter would allow EU carmakers with U.S. manufacturing operations, like BMW and Mercedes-Benz, to offset imports with export values.
A breakthrough is possible within days, though key issues remain unresolved. The EU is pushing for concessions on cars—a red line for Brussels—while the U.S. is hesitant on quotas and remains focused on boosting domestic production. Both sides are also exploring mutual tariff reductions and regulatory alignment. In 2024, the EU exported nearly 758,000 cars worth €38.9 billion to the U.S., underscoring the stakes for both economies.
The latest tariff tantrum is here:
