European Union to lower tariffs on United States cars to avoid trade war with Donald Trump

In an effort to avoid a potential trade war, the European Union is willing to lower its 10% tariff on cars imported from the United States, with discussions focusing on reducing it closer to the 2.5% rate that the US currently imposes on European cars.

In a conversation with Financial Times, Bernd Lange, head of the European Parliament's trade committee, said that the move is part of a broader strategy to defuse tensions with President Donald Trump, who has expressed frustration over trade imbalances.

The EU is also prepared to offer to purchase more liquefied natural gas and military equipment from the US to further sweeten the deal. However, Lange warned that if a compromise can't be reached, the EU might target US tech and financial firms with retaliatory measures, underscoring the seriousness of the ongoing trade negotiations. For now, it remains to be seen how the situation will unfold.