The EU Must Stand Up To Trump On Cars

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Caving in to Trump’s demands to recognise US car standards as equivalent to Europe would be a grave error. But it’s part of a pattern

One of Donald Trump’s many obsessions is that Americans buy more cars from Europe than the other way round. To punish European carmakers the US president has now decided to impose 25% tariffs on EU-made cars.

EU carmakers are reeling. The Trump tariffs will create their global supply chains and increase costs. Having just lost millions of cars sales in China because of their poor EV offer, they are now on the backfoot in another big market.

In the auto dialogues with Ursula von der Leyen, car execs had two priorities. First to gut the 2025 and 2035 car CO₂ standards. Von der Leyen gave the car guys more or less what they wanted on 2025, providing two more years to comply with the rule. The fight is on for 2035.

The industry’s second demand was for the EU to climb down in its trade disputes with China and the USA. German carmakers loudly opposed the EU tariff investigation into China’s EV subsidies. Some are now suing the Commission, perhaps trying to impress the Chinese government with their zeal. Will they also sue Donald Trump to impress the EU?

Probably not. Instead the car lobby is urging the Commission ‘to make a deal. Essentially the message is: “just give the guy what he wants” so we can keep shipping cars around the wold.

Trump’s thinking on the tariffs seems twofold. On the one hand he believes tariffs will force the onshoring of car manufacturing. On the other hand, he is upset Europeans “don’t take [American] cars”, i.e. he is frustrated that US cars don’t sell well in Europe.

There’s a good reason for that. They generally don’t comply with EU safety and environmental rules.

Perhaps, trade negotiators thought, could Donald Trump be persuaded to ditch or lower the tariffs if we solve that problem for him? And so in recent weeks Commission officials were canvassing the idea to basically ditch EU standards and deem US vehicles, with their lower safety and environmental performance, as equivalent to the EU.

This is shocking. How could the EU executive seriously ponder opening the floodgates to RAM and F150 pick-up trucks and monster SUVs such as the Cadillac Escalade or Chevrolet Silverado?

With vehicle fronts this high and blunt, it’s no surprise that pedestrian road deaths in the US have jumped 83% since 2009. All the while, Trump is destroying the weak rules currently in place, and is shutting down federal agencies that have the ability to check whether America’s self-certifying corporations follow the rules. It highlights the risk of the Commission Clean Industrial Deal becoming a figleaf for doing big business’ bidding no matter the cost.

But there is a wider point. EU leaders’ response to Trump has been far too muted. The US president is conniving with Europe’s enemy, Vladimir Putin, humiliates its bravest people, Ukraine and preys on Canada and Greenland like a gangster. He wages war on judges, education, journalists, climate science and civil society.

The response cannot be to “give the guy what he wants”. Europe must recognise its interests do not always align with the interests of multinational carmakers. Business is more than happy to fight against Europe’s long-term strategic interests if their short-term profits are at risk (just look at the debate on the CO₂ Regulation).

At a time when Europe’s leaders are rushing to remilitarise our societies, it is crucial that they are clear what Europe stands for. We would argue freedom, democracy, rule of law, a thriving civil society, solidarity with the weak and respect for nature, people and science. Europeans have rejected other US products — everyone remembers chlorine washed chicken — killer cars should be no different.

European leaders must not just stand up to Putin, but also to Donald Trump. Calling his bluff in the car wars would be a good start. Let Trump build a wall to protect expensive, gas guzzling SUVs. Meanwhile, Europe and China can compete and collaborate in the race for all-electric, software defined and automated vehicles.

By William Todts, Executive Director
Originally published on T&E website.

Featured photo by European Parliament via Flickr (CC BY 2.0 license).