The United States is employing a classic hardball tactic in its trade negotiations with the European Union, making it clear that a reduction in its steep auto tariffs is a conditional reward, not a guaranteed concession. The current 27.5% tariff will only be cut to 15% after the EU moves to introduce legislation lowering its barriers to US goods, effectively telling Brussels: “You first.”
This framework places the ball firmly in the EU’s court, forcing the 27-member bloc to navigate its complex legislative process before its most important export industry sees any relief. The text of the deal is unambiguous, stating the tariff reduction will commence “from the first day of the same month” that the EU’s legislative proposal is tabled, directly linking US action to EU procedure.
An American official reinforced this stance, explaining that the US would be “in a position to provide that relief” as soon as the legislation is introduced, not necessarily passed. While this suggests a path for rapid de-escalation, it still represents a significant tactical victory for Washington, which has successfully leveraged its tariffs to prompt legislative change in Europe.
This power play has not gone unnoticed in Europe. French Prime Minister François Bayrou’s description of the deal as a “submission” captures the sentiment among some that the EU has been outmaneuvered. While the deal averts a full-blown trade war, it sets a precedent where US tariff relief is used as leverage to dictate the pace and direction of European trade policy.