EU accepts levies on cars to buy time to negotiate with the US
14 April 2025
A quick recap of Trump's trade war: After announcing record tariffs on almost all countries (including 20% on the EU) two weeks ago, the US president made a U-turn last Wednesday, only applying a 10% universal rate on all countries except China for 90 days. These 10% come in addition to the 25% tariff on European steel, aluminium, and cars introduced in February and March.
On Thursday, European Commission president Ursula von der Leyen held off instigating countermeasures against the 10% blanket tariff, and American steel and aluminium. With this move, the EU essentially accepts Trump's tariffs for the moment, without an equivalent tax on American goods coming into Europe.
Why does this matter? €52 billion worth of European cars and metals will be levied by the US. A lack of certainty deeply affects Europe's economy, disrupting companies' supply chains, causing market turmoil, and raising consumer prices.
 | Laoise Murray The Commission's decision to accept tariffs on specific goods for the time being appears to be a tactic to buy time and try to negotiate the tariffs down. Apple and other smartphone companies won an exception to the US import taxes on Saturday, easing the pressure on their manufacturing costs in China, where a 145% rate now operates. The EU's slow response to the tariffs is typical of the EU's consensus-driven political structure, which requires all member states to be on board before taking decisive action. |
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