Overview
- Trump, in a Thursday post after a call with European Commission President Ursula von der Leyen, gave the EU until July 4 to carry out last year’s Turnberry trade framework or face higher tariffs.
- EU lawmakers and member-state negotiators ended late-night talks on Wednesday without a deal on the legislation, with another trilogue expected on May 12 or 19 and a European Parliament plenary vote targeted for June.
- U.S. Trade Representative Jamieson Greer said the administration is moving forward with tariff actions, and the U.S. ambassador to the EU warned a 25% auto rate could arrive relatively soon if talks stall.
- The Turnberry pact envisioned a 15% U.S. cap on most EU goods as the EU scrapped industrial tariffs, while Parliament now seeks a sunrise clause tied to U.S. steel and aluminum duties, suspension triggers, and a sunset date of March 31, 2028.
- The stakes are acute for European carmakers that rely on U.S. buyers, as the U.S. took about 22% of EU vehicle exports in 2024 and analysts estimate each additional 10% in duties could cost German automakers roughly €2.6 billion a year.