Trump’s thinking on the tariffs seems twofold. On the one hand he believes tariffs will force the onshoring of car manufacturing. On the other hand, he is upset Europeans “don’t take [American] cars”, i.e. he is frustrated that US cars don’t sell well in Europe.
There’s a good reason for that. They generally don’t comply with EU safety and environmental rules.
Perhaps, trade negotiators thought, could Donald Trump be persuaded to ditch or lower the tariffs if we solve that problem for him? And so in recent weeks Commission officials were canvassing the idea to basically ditch EU standards and deem US vehicles, with their lower safety and environmental performance, as equivalent to the EU.
That has prompted the European Commission, which handles trade matters for the EU, to start working on a “term sheet” for a potential agreement, which would set out areas for negotiations on the punitive trade measures, including lowering its own duties, mutual investments with the US as well as easing certain regulations and standards, said the people, who spoke on the condition of anonymity.
Looks like the EU is waving the White Flag in response to the US’s Jolly Roger [tariffs]
Of course not. US cars are too large for most non-city roads. Which is why small cars sell in the EU and US rust buckets are allowed to rust away on dealers’ lots.