(Bloomberg) — US Ambassador to the EU Andrew Puzder said Washington will implement 25% tariffs on cars and trucks from the European Union \u201crelatively soon\u201d if the bloc doesn\u2019t swiftly ratify a long-delayed trade deal.<\/p>\n
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\u201cUnless we see some substantial progress, I think you probably should expect those relatively soon,\u201d Puzder told Bloomberg Television.<\/p>\n
US President Donald Trump made the vehicle tariff threat last week, accusing the bloc taking too long to ratify the agreement, which was initially reached last July. The EU, meanwhile, is frustrated over several Trump moves it argues undermine Washington\u2019s commitments under the pact.<\/p>\n
Puzder\u2019s comments add pressure to EU negotiators this week as they try to finalize proposed amendments to the deal.<\/p>\n
\u201cWhat the president was saying was, \u2018Look, this has gone on long enough,\u2019\u201d Puzder said. \u201cYou\u2019ve done nothing for nine months.\u201d<\/p>\n
The potential car tariffs have brought long-standing transatlantic trade tensions to a head.<\/p>\n
Under the original deal, the EU agreed to erase levies on US industrial goods in exchange for a 15% tariff ceiling on most European products, including vehicles. A 25% car tariff would therefore violate that ceiling.<\/p>\n
The EU has warned it is ready to retaliate, but would prefer to deescalate and preserve the existing pact \u2014 which the US has partially implemented, but the bloc has not. On Tuesday, EU trade chief Maros Sefcovic told US Trade Representative Jamieson Greer that the bloc wants the main parts of the agreement in place by July. Sefcovic also pushed Washington to respect previous trade commitments.<\/p>\n
\u201cI don\u2019t know that July would be fast,\u201d Puzder said. \u201cI think the president\u2019s saying he\u2019s pushing for something more rapid, something quicker.\u201d<\/p>\n
Puzder\u2019s colleague, US Trade Representative Jamieson Greer, echoed the message later on Wednesday.<\/p>\n
\u201cI\u2019m not setting a hard date on it,\u201d he told Bloomberg Television. \u201cMy view is it\u2019s already past due.\u201d<\/p>\n
Europe is also smarting over Washington\u2019s decision to widen a 50% metals tariff to hundreds of products that include steel and aluminum, like motorcycles and tableware. The move didn\u2019t explicitly violate any US commitments, but many Europeans felt it nonetheless hollowed out the tariff ceiling.<\/p>\n
Recently, the US attempted to address Europe\u2019s frustration, changing how the tariff was calculated and exempting some products. But it did little to help, with officials saying the tweak actually made the situation worse for roughly half of the affected products.<\/p>\n
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Puzder said the two sides would continue discussing the matter.<\/p>\n
EU lawmakers are now negotiating with capitals over final amendments to the trade agreement, including a potential expiration date. Officials will meet Wednesday evening for talks, but a final agreement was not expected until June.<\/p>\n
Puzder chided the European Parliament for trying to \u201crenegotiate the deal,\u201d arguing \u201cwe\u2019re done debating.\u201d<\/p>\n
The US ambassador warned that Trump was willing to ditch the overall agreement if the EU imposes additional trade measures.<\/p>\n
\u201cIf a deal isn\u2019t a deal, then the United States, I think, would walk away from it,\u201d he said.<\/p>\n
Greer warned that the changes would hamper the deal\u2019s benefits.<\/p>\n
\u201cThat could limit relief, limit the benefit of the agreement, place limits on US exports to Europe,\u201d he said.<\/p>\n
\u201cThat could limit relief, limit the benefit of the agreement, place limits on US exports to Europe,\u201d Greer said.<\/p>\n
Heightened car tariffs would particularly bite for Germany, an auto manufacturing base and the EU\u2019s largest economy.<\/p>\n
\u201cFor us, the topic of auto manufacturing and exports, being an automotive location, is very central and I\u2019m hopeful that we can also solve this challenge in a good way together,\u201d German Economy Minister Katherina Reiche told reporters on Wednesday in Paris, where Group of Seven trade ministers are meeting.<\/p>\n
The strained transatlantic relationship is emblematic of how Trump has rearranged the global economic system.<\/p>\n
\u201cWe\u2019re moving away from a balanced and stable international trade system,\u201d French Trade Minister Nicolas Forissier said at the G-7 gathering. \u201cNow we have a more difficult environment, unstable,\u201d with \u201cweaponization of mutual dependencies, and so we have to act accordingly.\u201d<\/p>\n
Trade is not the only area where transatlantic relations are souring. Trump has repeatedly threatened the NATO military alliance, trashed the EU\u2019s tech rules and fumed at Europe\u2019s refusal to provide military support for the US-Israeli war against Iran.<\/p>\n
Trump even said he would yank 5,000 US troops from Germany after Chancellor Friedrich Merz said US negotiators were being \u201chumiliated\u201d in talks with Iran.<\/p>\n
–With assistance from James Regan and Kavita Mokha.<\/p>\n
(Updates with Greer comments starting in paragraph 10.)<\/p>\n
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