The European Union, which is trying to avoid a trade conflict with U.S. President Donald Trump, said it had not made any concrete proposals to reduce tariffs on imported U.S. cars. "Any tariff reduction must be mutually beneficial and negotiated within a fair and rules-based framework," the European Commission said in a statement on Tuesday.
The European Union is stepping up efforts to avoid a tariff dispute with Trump. Trump has said he plans to impose reciprocal tariffs on trading partners around the world, citing the European Union's value-added tax as an example of what the U.S. intends to target.
When Trump announced reciprocal tariffs last week, he said the EU had already lowered auto tariffs. Although the EU said this was not the case, Trump's comments showed that these tax issues are on his agenda.
In addition, Trump announced a 25% tariff on imported steel and aluminum and proposed raising tariffs on automobiles - a move that would particularly hit German automakers.
EU trade chief Maros Sefcovic will travel to Washington and will meet on Wednesday afternoon with Trump's nominee for U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative nominee Jamieson Greer, and Trump's chief economic adviser Kevin Hassett. European Commission spokesman Olof Gill confirmed the meeting.
Trump has been asking the EU to lower tariffs on American cars, which currently stand at 10%, compared with the U.S. tariff level of 2.5%. However, any such move would force the EU to lower tariffs on all World Trade Organization members.