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EU states back swift US trade deal implementation after Trump tariffs threat

Negotiations between European Parliament and Council representatives are set to resume on legislation designed to lower EU duties on American goods, though the Parliament is seeking to attach several safeguards to any deal.

Shubhendu Vimal May 05 2026

EU member states are pressing for rapid implementation of the bloc's side of a trade agreement with the US, as President Donald Trump threatens to raise tariffs on European cars and trucks to 25%, Reuters reported.

Negotiations between European Parliament and Council representatives are set to resume on legislation designed to lower EU duties on American goods, though the Parliament is seeking to attach several safeguards to any deal.

Trump issued the tariff warning on Friday (1 May), citing the EU's failure to honour commitments made at his Turnberry golf resort in Scotland in July 2025 – specifically, the removal of EU levies on imported US industrial goods.

The proposed legislation has twice been put on hold by the European Parliament.

The first suspension came after Trump threatened tariffs on European allies that had not supported his bid to acquire Greenland; the second followed the introduction of fresh US import levies.

Diplomats indicated that EU member states broadly favour a swift resolution between Parliament and the Council.

Manfred Weber, leader of the centre-right European People's Party – the Parliament's largest grouping – called for negotiations to conclude quickly enough for Parliament to give its final approval this month, though that timeline was acknowledged as ambitious.

Bernd Lange, chair of Parliament's trade committee and its lead negotiator, said Trump's conduct was “unacceptable” and argued that this made the case for additional safeguards stronger.

Separately, the prospect of a weakened USMCA is adding pressure across the automotive sector.

Several carmakers, including Nissan, Hyundai and Toyota, cautioned last month that affordable entry-level vehicles could disappear from the US market if the US-Mexico-Canada Agreement is not renewed or is substantially revised.

Those manufacturers are among the few still offering budget-friendly smaller cars in the US, as domestic producers have largely shifted their focus to SUVs and pickup trucks.

Industry executives warned the administration that without significant tariff relief on vehicles and components, some overseas manufacturers may no longer find it viable to produce and sell lower-priced cars in the American market.

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