According to reports, there has been progress in the US-EU automotive tariff negotiations regarding production credits in the US, but the US side tends to reject the quota proposal

Reuters reported that the United States and the European Union are discussing a series of proposals regarding automobile tariffs, involving tariff reductions, import quotas, and providing credits to EU automakers producing cars for export in the U.S.

According to the news, one proposal is to offer tariff reductions to EU automakers producing cars for export in the U.S., allowing manufacturers to receive credits based on the export value to offset the value of cars imported from the EU, permitting the import of EU cars into the U.S. at zero or low tax rates, with excess subject to the highest tariffs. Additionally, if EU companies are willing to make extra investments, they could also receive tariff reductions. The report indicates that the EU is trying to find concessions acceptable to both the automotive industry and the U.S., while the U.S. hopes to promote American manufacturing and employment.

The news also states that the EU has proposed a framework for exempting automobile tariffs to the U.S., similar to the agreement reached with the UK. The U.S. reduced tariffs on cars manufactured in the UK to 10% and set an annual import quota of 100,000 cars. The report cites U.S. industry sources indicating that the U.S. is inclined to oppose the proposal, and it is said that both sides have discussed mutual reductions in automobile import tariff rates, with the EU also proposing non-tariff measures, including the standardization of automobile safety testing regulations