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EUUS Trade Deal Stalls as U.S. Warns of 25% Auto Tariffs

A renewed 25% U.S. car duty threat raises the stakes for EU lawmakers to settle safeguard demands before a May 19 trilogue.

Overview

  • EU lawmakers, the European Commission and member governments ended their latest talks without a deal to pass the law that would put last year’s Turnberry trade terms into force.
  • The U.S. increased pressure, as Ambassador Andrew Puzder warned 25% tariffs on European cars could arrive soon if talks fail, and Trade Representative Jamieson Greer said the administration is moving forward with the action.
  • Parliament negotiators led by Bernd Lange are pushing for extra safeguards, including a clause tying entry into force to U.S. steel tariff relief, a suspension trigger for threats to EU territorial integrity, and a built‑in expiry.
  • The next three‑way trilogue, which is the EU’s standard closed‑door negotiation to finalize laws, is set for May 19 in Strasbourg, with both sides aiming for a July compromise as stopgap tariffs run out.
  • Legal uncertainty has hung over the pact since February, when the U.S. Supreme Court struck down the tariff authority Trump had used, leaving businesses—especially European automakers—at risk of higher costs if 25% duties land.