EU Looks To Reach New Trade Deal With US Quickly To Avoid Tariffs

As Ford Authority reported earlier today, President Donald Trump and his administration penned a letter to officials in Japan and South Korea informing them that the U.S. will impose 25 percent tariffs on certain imported goods beginning August 1^st, a move that comes as the sides work to hammer out a new trade deal. If nothing changes between now and then, certain automotive parts not subject to levies currently would be impacted. In the meantime, the European Union has been working to negotiate its own trade deal with the U.S. ahead of a July 9^th deadline, and even though that was pushed to August, it’s still seeking a quick resolution.

According to Automotive News, the EU still wants to hammer out a preliminary trade deal with the U.S. this week, which would reportedly enable it to lock in a 10 percent tariff. The move comes after Trump pushed his deadline to reach a new deal from July 9^th to August 1^st, meaning that tariffs slated to take effect tomorrow will be delayed a few more weeks. If Europe and the U.S. fail to reach an agreement by then, tariffs on the former would soar to 50 percent for virtually all exports.

The Trump administration has reportedly offered Europe a 10 percent tariff on most all of its exports, save for things like alcohol and aircraft, which is quite a bit lower than the 25 percent levies imposed on other countries. This news comes just a day after Toyota revealed that it would be willing to sell vehicles made by U.S.-based automakers like Ford and General Motors in Japan, an effort to help the country negotiate a better deal with the Trump administration.

As Ford Authority previously reported, European automakers have expressed interest in ramping up investments and production in the U.S. – even building vehicles there for export to other countries – in exchange for reduced tariffs on that part of the world, but the EU is worried that such a move could divert investments and production away from the region.