(Feb 18): The European Union said it hasn’t made any specific offer yet to reduce tariffs on imported US cars as it works to avoid a trade confrontation with President Donald Trump.

The European Commission, the EU’s executive arm, said Tuesday in a statement that “any tariff reductions must be mutually beneficial and negotiated within a fair and rules-based framework”.

The EU is intensifying its efforts to avoid a tariff dispute with Trump, who has said he plans reciprocal tariffs on global trading partners, citing the bloc’s value added tax as an example of measures the US is looking to respond to.

During his announcement about reciprocal tariffs last week, Trump said the EU had already lowered its tariffs on cars. While the EU said that’s not the case, the remark suggests the issue of those levies has been on his agenda.

In addition, Trump announced 25% tariffs on imports of steel and aluminium and floated higher auto levies — a move that would be a particular hit to German carmakers.

EU’s trade chief Maros Sefcovic is heading to Washington for a Wednesday afternoon meeting with Trump’s picks for commerce secretary, Howard Lutnick, his trade representative nominee Jamieson Greer, and Kevin Hassett, Trump’s top economic adviser. The meeting was confirmed by commission spokesman Olof Gill.

Trump has been demanding that the EU lower tariffs for US cars, which are currently at 10%, compared with the US’s 2.5% tariff level. But any such move would force the bloc to lower duties for all the World Trade Organization members.

The commission pointed out that the US imposes a 25% tariff on pickup trucks, which is the largest segment of the US auto market, around one-third of all vehicle sales.

The EU also pointed out that despite Trump’s complaints of a massive trade deficit with the EU, when both goods and services are factored in, the EU runs a “small” surplus with the US of €48 billion (US$50.2 billion or RM223.07 billion), or 3% of total US-EU trade.

As part of a proposal to deepen the bilateral cooperation, the EU has said it’s ready to import more liquefied natural gas and possibly to purchase more weapons from the US.

“The EU is ready to find mutually beneficial solutions with the US on tariffs,” the commission said.

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