EU Parliament May Reject Proposal to Lower US Tariffs, Warnings Emerge
The European Parliament is poised to potentially reject Brussels’ initiative to reduce tariffs on US exports, a senior lawmaker has cautioned, jeopardizing the bloc’s efforts to alleviate Donald Trump’s severe car tariffs. According to Bernd Lange, chair of the Parliament’s international trade committee, he remains “unsure” whether lawmakers will support an upcoming European Commission proposal aimed at eliminating duties on industrial and food products imported from the US, reports 24brussels.
Lange expressed concerns about the clarity of the proposal, which the Commission has promised to present by the end of August, necessary for unlocking Washington’s commitment to reduce its EU car tariffs from 27.5% to 15%—the rate applied to most other EU goods under a recently established agreement between the US and EU.
“No, I’m not sure that the Parliament will adopt the proposal,” Lange stated. “For example, for me, it’s not clear why it’s justified that products made with steel and aluminium going from the EU to the US should face a 50% tariff, but that they should get zero when they are coming from the US to the EU.”
He further indicated that Parliament’s approval would depend significantly on the proposal’s detailed specifications. “Is this a temporary legislation? Is there a review clause? And is there a link to unpredictable developments in the US?” he queried.
In a joint statement on the deal released last week, EU and US officials noted that EU exporters are “expected” to benefit from a reduced auto tariff rate “from the first day of the same month in which” the proposal is introduced.
The European Commission has asserted that the legislation does not require approval from EU member states or the European Parliament prior to the US lowering its auto tariffs. “It’s only the proposal stage itself that will trigger the US to also move forward – so it is our input, not our output, that matters here,” a senior Commission official elaborated.
EU Trade Commissioner Maroš Šefčovič assured reporters last week that the Commission would adhere to “the ordinary legislative procedure,” which will involve full engagement from both Parliament and the Council to achieve the outcomes promised in the joint statement.
Šefčovič emphasized the need for the proposal to stem the “bleeding” in Europe’s export-driven car industry, which is grappling with heightened competition from Chinese electric vehicles alongside Trump’s tariffs.
Last year, the US constituted the EU’s second-largest car export market after the UK, with 758,000 vehicles valued at €38.9 billion exported across the Atlantic, according to the European Automobile Manufacturers’ Association, a Brussels-based industry group.
Digital Tax Threats from the US
Lange’s remarks came shortly after Trump threatened to impose “substantial additional tariffs” on US trading partners that “attack” American tech companies through digital taxes or service regulations.
Trump and high-ranking US officials, including Vice-President JD Vance, have decried the EU’s digital regulations, branding them as “digital censorship” that unfairly targets US tech giants, such as Google, Apple, and Meta.
On Tuesday, the Commission firmly defended its digital regulations, reiterating the EU’s “sovereign right” to regulate tech companies operating within its borders. “The EU’s digital rulebook is not part of our trade deal agreement with the US, and we will proceed with the implementation of our framework agreement,” stated Paula Pinho, the EU chief spokesperson.
Trump’s threats have sparked outrage among EU lawmakers, including Marie-Pierre Vedrenne, a French centrist MEP on the Parliament’s trade committee, who accused the US president of “blackmail.”
Meanwhile, EU diplomats and lawmakers, including Lange, are uncertain about the timeline for the Commission’s proposed legislation, though some speculate it might be unveiled as early as Wednesday. “The Commission is working hard,” Lange noted.
Vedrenne also emphasized to Euractiv that for the Commission to secure “democratic support” for the deal, the incoming legislation must be put to a vote in the European Parliament.
Eddy Wax contributed to reporting.
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