The European Union is willing to lower tariffs on US cars to avoid a trade war with President Donald Trump. The current 10% import tax could be reduced to 2.5%, the same rate Washington currently charges on cars imported from the EU.
The EU is also considering purchasing more liquefied natural gas and military equipment from the US. The bloc's automotive sector supports the move, fearing Trump's threat to impose tariffs.
The EU exported 738,436 vehicles to the US in 2022, worth €37.4 billion, while importing only 271,476 from the US, worth €8.7 billion. German automakers, including BMW and Mercedes, support the tariff reduction.
If negotiations fail, the EU could retaliate by targeting American technology and financial companies.