The Financial Times quoted three diplomats as saying that in order to prevent a full-scale trade war with the United States, European officials are currently considering negotiating with major global auto exporters to reduce tariffs. Later in July, European Commission President Jean-Claude Juncker will hold talks with US President Trump in the United States.
According to the above-mentioned three diplomats, the European Commission "is currently studying whether it is appropriate to negotiate transactions with major auto exporting countries such as the United States, South Korea, and Japan." Previously, Trump said that the US auto industry was unfairly treated. The EU's move would not only solve Trump's complaints, but also reduce the cost of auto exports in other participating countries. The above-mentioned diplomats pointed out that the EU is currently seeking opinions from some countries on this idea, but it is still not possible to assert whether it can reach an agreement or a specific tax reduction for products in the automotive industry.
Foreign media pointed out that under such an agreement, member states can agree on the tax reduction of specific products, that is, the concept of “Plain Agreement†in the field of international trade. WTO members (optional) can reach tariffs. protocol.
At present, the EU imposes a 10% tariff on imported vehicles, while the United States imposes only a 2.5% tariff on imported vehicles. In June, Trump threatened to impose a 20% tariff on US vehicles imported from the European Union, reducing the market share of car companies in the region. Trump said that if the EU does not reduce tariffs on cars imported from the United States, the United States will have to act.
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