Steel and aluminum tariffs have caused automakers, including General Motors, to lower profit forecasts for the year, but auto tariffs could bring greater headaches to boardrooms. On the European front, however, nothing will change for the time being.
Bloomberg reported Wednesday that the United States and Europe agreed to hold off on any new auto tariffs for the time being. President Trump met with European Commission President Jean-Claude Juncker to calm an escalating trade war.
President Trump proposed a 25-percent tariff on European cars imported into the U.S., which would have called for retaliatory measures by the EU. No deal has been laid out, but essentially, the two sides have agreed to have a deal to avoid new tariffs in the near future.
“We are starting the negotiation right now, but we know where it is going, President Trump said. He also called the talks a “new phase” of trade relations.
The president also said he will work with Juncker to “resolve” steel and aluminum tariffs imposed on the EU and Europe’s retaliatory measures on U.S. goods.