EU-US Trade Talks Discuss Car Import Quotas and Export Credits

Brussels and U.S. are discussing measures to protect the EU auto industry from steep U.S. import duties, like tariff cuts, import quotas, and credits against EU automakers’ U.S. exports. Talks aim to reach a trade agreement outline by August 1 deadline set by Trump.

EU negotiators seek relief from 25% U.S. car import tariff since April, on top of existing 2.5%. Talks ongoing about potential tariff cuts and other terms. Unclear if U.S. will agree to all from biggest EU trading partner.

EU trade chief optimistic about framework trade agreement with U.S. Sources say talks moving “fast.” Proposal on the table includes relief from import tariffs for U.S.-based carmakers exporting vehicles, with credits applied against EU import value.

Brussels seeks concessions acceptable to EU carmakers like BMW, Porsche, and Mercedes-Benz, as well as to Trump administration’s goal of boosting U.S. manufacturing and jobs. Delicate balancing act underway as terms are negotiated.

Europe shipped 758,000 cars worth 38.9 billion euros to the U.S. in 2024, more than four times as many as in the other direction. Talks may follow similar framework to U.S.-UK deal, with possible tariff cuts and import quota discussions.

Both sides looking at cutting auto import tariffs from current levels. EU offering non-tariff elements like standardizing regulations, such as auto safety tests. Talks ongoing to find acceptable terms for both parties in trade negotiations.

Read more at Yahoo Finance: Car import quotas, export credits on table for EU-US trade talks, sources say