The European Union is accelerating efforts to implement a trade deal with the United States to avoid the threat of a 25% auto tariff. EU diplomats reported that talks to lower tariffs on US imports will resume on Wednesday between the European Parliament and the EU Council.
The tensions have escalated after President Donald Trump accused the EU of failing to live up to the terms of the deal struck in Scotland last July. Trump threatened to impose steep levies on European-made vehicles as early as next week if US demands are not met immediately.
Germany, a major auto exporter, has been the most vocal in pushing for a quick solution. Chancellor Friedrich Merz has urged the EU to finalize its part of the deal quickly to protect its auto industry from huge losses from tariffs.
However, the European Parliament has already postponed the legislation twice in response to Trump's previous political threats. Parliament is now demanding additional safeguards in the deal to protect the bloc's interests from unilateral US action.
Trade experts have advised the EU to be careful in handling this pressure to avoid escalating the wider trade conflict. The focus now turns to Wednesday's meeting to see whether a final approval timeline can be reached before the new tariffs go into effect.
