A U.S.-EU trade deal hinges on cars, agriculture and Trump

A U.S.-EU trade deal hinges on cars, agriculture and Trump

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Cars and tariff levels on agriculture have emerged as key sticking points between the European Union and the U.S. as the two sides work toward a provisional trade agreement in the coming days, according to people familiar with the matter.The EU is seeking a tariff no higher than 10% on agricultural exports, the people said. An offset mechanism that some carmakers had pushed as a way to grant tariff relief to companies in return for investments in the U.S. isn’t under consideration for now amid worries from the EU it could shift production across the Atlantic. The bloc’s negotiators are focusing talks on car tariffs instead, added the people, who spoke on condition of anonymity to discuss private deliberations.The bloc is also set to again recommend delaying a set of countermeasures it had adopted in response to tariffs imposed earlier by U.S. President Donald Trump on steel and aluminum, the people added. The EU had paused the measures to allow for negotiations and they’re due to snap back automatically at midnight on Tuesday.

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