SUMMARY
The EU is offering to reduce its 10% car import tariff closer to the U.S. rate of 2.5% to prevent a trade war with President Donald Trump. The proposal, confirmed by European Parliament trade official Bernd Lange, also includes increased purchases of U.S. liquefied natural gas and military equipment. The EU hopes the move will de-escalate tensions and reduce its trade surplus with the U.S. Key car-producing nations, including Germany, support the plan. If negotiations fail, the EU is prepared to deploy its new anti-coercion instrument (ACI) to target U.S. tech and financial firms, possibly suspending intellectual property rights and imposing duties on digital platforms. Lange emphasized the EU's readiness to defend its interests, noting the bloc’s stronger economic influence compared to past cases involving Canada and Mexico. The EU aims to avoid economic conflict while maintaining leverage to counter pressure from the Trump administration.
