EU negotiator says 'still some way to go' on US trade deal under threat of higher auto tariffs


New cars, imported or waiting to be exported, are parked in the port of Zeebrugge, Belgium, July 18, 2025. REUTERS/Yves Herman/File Photo

BRUSSELS, May 7 (Reuters) - European lawmakers and governments ⁠are making good progress in negotiations to finalise a deal scrapping duties on U.S. imports but "there is ⁠still some way to go", the European Parliament's chief negotiator Bernd Lange said on Thursday.

The lawmakers ‌and governments were aiming to finalise a deal under renewed pressure from U.S. President Donald Trump, with divisions over safeguards an overhang on the chances of a swift agreement.

"We have just concluded a constructive second trilogue during which we made good progress on the issue of the safeguard ​mechanism and the review and evaluation of the main regulation, but there ⁠is still some way to go", Lange ⁠said in a statement.

The negotiators will meet again on May 19 for the next round of talks.

Trump said on ⁠Friday ‌he would increase tariffs on EU cars and trucks to 25% this week, from 15% currently, because the EU was not complying with the terms of a deal struck in Scotland last July.

Many EU countries want ⁠to ward off that threat and are pushing for swift implementation of ​legislation to remove import duties on ‌U.S. industrial goods and grant preferential access to U.S. farm and sea produce, as set out in ⁠the trade accord.

However, nine ​months after the deal was struck, the European Parliament and the Council, the body representing EU governments, still have to agree on a common text before the duty reductions can enter force.

Lange said earlier in May that Trump's "behavior is unacceptable", after the U.S. ⁠president's surprise move to increase tariffs.

LAWMAKERS WANT TOUGHER SAFEGUARDS

EU lawmakers want ​tougher safeguards, including suspending the deal if the U.S. fails to comply, making tariff cuts conditional on U.S. action, and ending EU tariff concessions entirely on March 31, 2028.

EU governments had little appetite for inserting such items, one EU diplomat said. ⁠Another said the two sides were still far apart, with further talks likely to be required next month.

Manfred Weber, president of the centre-right European People's Party, the largest group in the European Parliament, said he wanted to see a final vote in the EU assembly in May.

However, that appears ambitious given a number of political groups believe Trump's latest ​threat means strong safeguards are essential.

The car tariff threat cast a shadow over ⁠a meeting of G7 trade ministers in Paris on Wednesday.

German Economy Minister Katherina Reiche, whose country would be among those hardest ​hit by the car tariff increase, said she was in intense talks ‌with U.S. officials and was hopeful they would "solve this challenge".

EU ​Trade Commissioner Maros Sefcovic said he would be heading to Brussels to attend the negotiations later in the day.

(Reporting by Philip Blenkinsop, Chris Thomas and Mrinmay Dey in Mexico City; Editing by Bernadette Baum)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In World

Pope Leo to hold Wednesday audience for first time since cancer surgery
Search for the wreckage of aviation pioneer Amelia Earhart's plane comes up empty
Alberta votes on leaving Canada; separatist movement likely to outlast expected defeat
Terrorism squad probes vehicle attack that critically injured Australian lawmaker
El Ni�o-powered drought leaves Indonesian palm farmers high and dry as river recedes
Spain's rush to clear Ceuta migrant backlog raises rights concerns
Twelve migrants, including infant, drown as boats capsize off Greek islands
France reels from weekend violence as mayors rebuke government for security failings
Mali forces, Russian backers kill scores of civilians in drone strikes, report says
Putin proposes summit with Trump and Xi to discuss Ukraine deal, WSJ says

Air Pollutant Index

Note: API is calculated based on 24hr running average of the most dominant parameter.

Highest API Readings

    Select State and Location to view the latest API reading

    Others Also Read