EU fails to finalise trade deal with US, risking new tariffs on cars

Negotiators from the European Parliament and EU countries met to discuss potential amendments to the transatlantic deal, which was initially struck in July. But they didn't make conclusive decisions

By Jorge Valero

 

The European Union failed to finalise a long-delayed US trade deal during overnight talks, despite warnings from President Donald Trump that he would soon impose fresh tariffs.

 

Negotiators from the European Parliament and EU countries met Wednesday night to discuss potential amendments to the transatlantic deal, which was initially struck in July. But they didn’t make any conclusive decisions, according to Cyprus, which holds the EU’s rotating presidency.  

 

Talks will continue in the coming weeks. 

 

Officials are “committed to moving swiftly,” Cypriot Energy Minister Michael Damianos said in a statement. 

 

The EU is under mounting pressure from the US to ratify the trade pact. Trump last week threatened to increase duties on EU cars and trucks to 25 per cent from 15 per cent, accusing the EU of not moving fast enough to adopt the agreement. 

 

 

Under the original accord, the EU agreed to erase levies on US industrial goods in exchange for a 15 per cent tariff ceiling on most EU products, including autos. The US partially implemented its pledges while the EU worked through its legislative process.

 

US Ambassador to the EU Andrew Puzder said on Wednesday that the EU should expect higher auto tariffs “relatively soon” if it doesn’t make substantial progress this week.

 

European Commission President Ursula von der Leyen said earlier this week that that the EU is in the final stages of implementing its tariff commitments, adding that US alignment with its commitments was “still outstanding.” The commission, which handles trade matters for the bloc, has said it would respond if the US carried out Trump’s tariff threat.

 

“Everything is on the table,” French President Emmanuel Macron said earlier this week on a trip to Armenia. “If any given country were threatened with tariffs, the EU has equipped itself with instruments that would then have to be activated, because that is their purpose.”

 

Macron added that he hoped that reason would prevail again “as soon as possible.”