German Economic Minister Peter Altmaier said Thursday there were even odds that the U.S. and the European Union could reach a deal that would avoid the Trump administration imposing tariffs on autos and auto parts imports.
President Trump has repeatedly threatened to impose tariffs if a broader trade deal is not reached, but talks between both sides have been stalled for months.
“I think we have a 50-50 chance. We will be able to avoid punitive tariffs if we can find reasonable, viable solutions that are in the interest of both sides,” Altmaier said following a meeting in Washington with U.S. Trade Representative Robert Lighthizer.
He added, “We may perhaps have a chance to come to solutions in the coming weeks, clearly before the end of the year.”
The U.S. and EU have had tentative plans to meet this year to resolve trade differences, but the talks have yet to be scheduled and are bogged down over disagreement about what issues will be discussed. The U.S. wants agricultural subsidies to be up for negotiation, but EU officials, France in particular, have repeatedly ruled that out.
The U.S. Trade Representative’s Office raised the threat of retaliatory tariffs on France Wednesday when it announced that it had launched an investigation into whether U.S. companies were being unfairly targeted by a proposed French tax on digital services. The tax passed the French Parliament Thursday.
