25% automobile tariffs "the sword is on the string"! US Ambassador to Europe puts pressure: if the European Union does not approve the agreement soon, tariffs will be increased.
The US Ambassador to the EU has stated that if the EU does not quickly approve a long-delayed trade agreement, Washington will "soon" impose a 25% tariff on cars and trucks coming from the EU.
US Ambassador to the European Union, Andrew Pitt explained that if the European Union does not quickly approve a long-delayed trade agreement, the US federal government will "soon" impose a 25% tariff on cars and trucks from the EU.
Pitt told the media, "Unless we see some substantial progress, I think you may see these measures very soon."
President Trump recently vowed to impose a 25% tariff on European cars, accusing the trade bloc of taking too long to approve the preliminary agreement reached last July. Meanwhile, the EU is angry with Trump's actions, believing that they violate Washington's commitments under the agreement.
Pitt's comments have added pressure to EU negotiators who are trying to finalize a draft of the agreement amendment this week.
Pitt stated, "The President's point is, 'Listen, this has been going on for a long time,'" "'You've been sitting around for nine months doing nothing.'"
The potential car tariffs have brought the long-standing trans-Atlantic trade tensions between the US and the EU to a peak.
According to the initial agreement, the EU agreed to remove tariffs on US industrial goods in exchange for setting a 15% tariff cap on most European products, including cars. Therefore, a 25% car tariff would violate that cap.
The EU has warned that it is ready to retaliate, but prefers to de-escalate the situation and preserve the existing agreement. On Tuesday, EU Trade Commissioner Maros Sefcovic told US Trade Representative Jameston Greel that the group hopes the key parts of the agreement could be implemented by July. Sefcovic also urged Washington to abide by previous trade commitments.
The EU is the largest source of imports for the US.
Pitt said, "I'm not sure if July can be considered fast," "I think the President is asking for faster, more expedient results."
Europe is also saddened by Washington's decision to expand the 50% metal tariffs to include hundreds of steel and aluminum products, including motorcycles and cutlery.
Recently, the US attempted to address Europe's anger by changing the way tariffs are calculated and exempting some products. However, this adjustment has almost been of no help, as officials say it has actually made the situation worse for about half of the affected products.
Pitt stated that both sides will continue to discuss this issue.
EU lawmakers are currently negotiating with governments on the final amendment of the trade agreement (including potential expiry dates). Officials are scheduled to meet for talks on Wednesday night, but a final agreement is not expected until June.
Pitt blamed the European Parliament for trying to "renegotiate the agreement" and insisted, "Our debate is over."
The US ambassador warned that if the EU implements additional trade measures, Trump is willing to abandon the entire agreement. He stated, "If the agreement is no longer an agreement, then I believe the US will withdraw."
This tense trans-Atlantic trade relationship is a microcosm of Trump's restructuring of the global economic system.
French Trade Minister Nicolas Forcier said to reporters in Paris on Wednesday, "We are moving away from a balanced, stable international trade system," as G7 trade ministers were meeting there. "Now our environment is more difficult, unstable, with the weaponization of interdependence, so we must take appropriate action."
Trade is not the only area where trans-Atlantic tensions have worsened. Trump has repeatedly threatened the NATO military alliance, criticized EU technical regulatory rules, and expressed anger at Europe's refusal to provide military support for a US confrontation with Iran.
After German Chancellor Friedrich Merz said that US negotiators were "humiliated" in talks with Iran, Trump even stated that he would withdraw 5,000 US troops from Germany.
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