EU ready to negotiate trade with US, including cars

The European Union said on Friday it is prepared to negotiate a limited trade deal, including on cars, with the US, after President Donald Trump held off imposing auto tariffs.

“We note that US postpones decision on car tariffs for 180 days,” European trade commissioner Cecilia Malmstrom tweeted.

“The EU is prepared to negotiate a limited trade agreement including cars.”

In another tweet, Malmstrom said she would discuss the issue with EU trade ministers next week before meeting on May 27 with US Trade Representative Robert Lighthizer.

EU countries last month gave the green light for Brussels to open talks with Washington “limited to the elimination of tariffs for industrial goods only” and defuse trans-Atlantic tensions.

They did not explicitly mention talks on cars as the threat of US tariffs on autos loomed.

But Trump announced earlier Friday he will delay by six months a decision on imposing steep auto tariffs on imported autos, including those from the EU.         

A Trump administration report concluded that America’s shrinking share of the auto market jeopardised its research, development and manufacturing—all “vital to national security.”

In her tweet, Malmstrom said: “We completely reject the notion that our car exports are a national security threat.”