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U.S.–EU Tariff Standoff Deepens as White House Presses 25% Duty on European Cars

A failed Paris meeting leaves the EU racing to finish last year’s trade deal.

Overview

  • U.S. Trade Representative Jamieson Greer said Monday on CNBC that the administration will move ahead with raising tariffs on EU cars and trucks to 25%.
  • Talks Tuesday in Paris between EU trade chief Maroš Šefčovič and Greer ended without a breakthrough, and an EU readout said Šefčovič urged a return to the 15% rate set in 2025.
  • EU lawmakers and governments resumed talks Wednesday to pass legislation delivering the Turnberry pact, which capped U.S. car tariffs at 15% in exchange for EU cuts on U.S. industrial goods, but divisions over extra safeguards slowed a deal.
  • European leaders rejected claims of non‑compliance, with Ursula von der Leyen saying “a deal is a deal” and Emmanuel Macron signaling the bloc could use its anti‑coercion tool if Washington imposes higher duties.
  • Investors sold European auto stocks after Friday’s announcement, and by Monday shares of BMW, Mercedes‑Benz, Volkswagen and Porsche had fallen, underscoring the sector’s heavy exposure to the U.S. market.