Economy May 4, 2026 09:38 AM

U.S. and EU Officials Hold Talks After Trump Orders 25% Auto Tariffs

Brussels moves to fast-track parts of a prior U.S.-EU agreement as lawmakers resume talks on cutting duties

By Maya Rios
U.S. and EU Officials Hold Talks After Trump Orders 25% Auto Tariffs

U.S. Trade Representative Jamieson Greer reached out to European Union and German trade counterparts after President Donald Trump announced a 25% tariff increase on EU cars and trucks. EU governments are pushing to swiftly implement their portion of a trade accord struck last year that was meant to block such tariff hikes, while the European Parliament and the Council prepare to resume negotiations on legislation to lower duties on U.S. imports.

Key Points

  • U.S. Trade Representative Jamieson Greer contacted EU and German trade officials over the weekend after President Trump said he would raise tariffs on EU cars and trucks to 25%.
  • EU member states are pushing for quick implementation of their portion of a trade agreement struck with the United States last year, an accord intended to prevent higher auto tariffs from taking effect.
  • The European Parliament and the Council will resume negotiations on Wednesday on legislation to reduce EU duties on U.S. imports, with the Parliament seeking multiple safeguards.

U.S. Trade Representative Jamieson Greer contacted officials in the European Union and Germany over the weekend in the wake of President Donald Trump’s decision to raise tariffs on European car imports to 25%, Greer said in remarks to CNBC on Monday.

The outreach follows the president’s announcement on Friday that he would impose a 25% tariff on cars and trucks imported from the EU this week. In explaining the move, the president said the EU had not complied with the terms of a deal reached at his Turnberry golf resort in Scotland in July.

According to EU diplomats speaking on Monday, member states within the bloc are urging rapid implementation of their obligations under the trade agreement struck with the United States last year. The diplomats said the accord was designed to prevent the higher auto tariffs from taking effect.

Separately, the European Parliament and the Council - the body that represents EU governments - are scheduled to resume negotiations on Wednesday over legislation that would reduce EU duties on U.S. imports. The Parliament is seeking to include multiple safeguards in that legislation, according to the diplomats.

The contacts by the U.S. trade representative and the parallel movement inside EU institutions reflect synchronized diplomatic and legislative activity following the president’s tariff announcement. Greer’s outreach to both EU-level and German trade officials came at the start of the week after the president’s Friday statement, and the EU’s internal discussions and planned legislative steps are set to continue midweek.

Details beyond the points above were not provided in the statements cited. The sequence of events as described centers on the executive action to raise tariffs, the U.S. trade representative’s weekend contacts with European counterparts, and the EU’s efforts to activate a previously negotiated agreement and to advance related legislation through its Parliament and Council.

Risks

  • Higher tariffs on EU autos could disrupt trade flows between the United States and the EU - sectors affected include automotive manufacturing and auto supply chains.
  • Failure by either side to implement the prior agreement or agree on legislative safeguards could prolong trade uncertainty - this affects international trade and industries exposed to tariffs, including autos and parts suppliers.
  • Ongoing negotiations and diplomatic contacts leave outcomes uncertain through midweek, creating short-term policy and market uncertainty for firms tied to transatlantic trade.

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