The Financial Times quoted three European Union (EU) diplomats briefed on the initiative, as saying that the EU is considering talks on a tariff-cutting deal between the world’s big car exporters to prevent an all-out trade war with the US.
Key Points:
Three diplomats said the European Commission is studying whether it would be feasible to negotiate a deal with other big car exporters such as the US, South Korea and Japan.
Such a move could address Mr. Trump’s complaint that the US sector is unfairly treated while reducing export costs for other participating countries’ auto sectors.
Under such a deal, participants would reduce tariffs to agreed levels for a specified set of products “” a concept in the international trade known as a “plurilateral agreement” that lets countries strike deals on tariffs without including the entire membership of the WTO.
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