EU member states and the European Parliament have so far failed to agree on the internal mechanism for implementing the trade agreement with the United States, despite pressure from Washington and the threat of new tariffs on European automobiles.
Negotiations between representatives of the European Parliament and EU countries took place on the evening of May 6 and lasted more than six hours, but no final decision was reached. According to Bloomberg, Cyprus, which currently holds the presidency of the Council of the European Union, confirmed that the parties discussed possible amendments to the transatlantic agreement concluded in the summer of 2025, but failed to reach a final compromise.
The issue concerns EU-US trade arrangements announced in July 2025. Under the agreement, Brussels is expected to abolish tariffs on a range of American industrial goods, while Washington maintains a baseline tariff rate of 15% on a significant share of European exports. Stricter conditions remain in place for steel, aluminum, and copper, including 50% tariffs.
The main dispute within the EU is related not so much to the principle of the agreement itself as to guarantees in case the United States fails to fulfill its obligations. The European Parliament insists on additional safeguard mechanisms, including the possibility of suspending concessions if Washington violates the arrangements. Some EU countries, by contrast, support a faster approval of the deal in order to avoid further escalation of the tariff conflict.
The situation escalated after threats by US President Donald Trump to raise tariffs on cars and trucks from the EU from 15% to 25%. Brussels fears that this would hit Germany and other countries with major automotive exports particularly hard. According to Reuters, most EU countries are interested in completing the procedure as quickly as possible, while the European Parliament demands stronger safeguards be built into the agreement.
Chairman of the European Parliament’s Committee on International Trade Bernd Lange stated that the negotiations had moved forward, but that “there is still a way to go” before a final decision is reached. The next round of consultations between the European Parliament and EU member states is scheduled for May 19 in Strasbourg.
For the European Union, this dispute is a test of its ability to conduct a unified trade policy under pressure from the United States. Some countries emphasize the need to quickly remove the risk of new tariffs for industry, while others fear that an overly soft EU position would create a precedent in which Washington could secure concessions through threats of additional duties.
For European businesses, the main uncertainty is currently linked to the automotive sector, industrial supplies, and transatlantic production chains. If the EU fails to coordinate its internal position in time, the risk of higher US tariffs will remain, and trade relations between the world’s two largest economic blocs could once again enter a phase of acute confrontation.
