The Big Three automakers are none too pleased with the European Union, accusing the bloc of keeping their full-size pickup trucks off European roads, and leading to one unnamed executive to claim the EU is in “a better position” than the U.S. in the trade war started by President Donald Trump. Of course, this is all a bit silly.
I mean, these trucks account for less than 0.1% of the entire European car market, and now its threatening to overshadow a broader trade deal between the U.S. and Europe, in which Trump agreed to cut European import duties from 27.5% to 15%. That agreement was actually finalized last year, but the EU has delayed its ratification.
Andrew Puzder, the U.S.’s ambassador to the EU, said that the bloc’s plans to change safety rules could breach the spirit of the trade deal if they end up preventing some American vehicles from being sold over there. Perhaps the lesson to be learned here is that Europe takes its safety more seriously that we do, but that’s a story for another day. From the Financial Times:
“Right now Europe is in a better position than the US,” said an executive at one Detroit carmaker, if the EU secured lower tariffs and US vehicles were shut out.
The EU agreed last August to reduce its tariffs on US vehicles from 10 per cent to zero, while the US will charge 15 per cent on EU car imports.
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The dispute centres on the EU’s Individual Vehicle Approval scheme, which allows certain bespoke or rare models, including those produced for other markets, to be imported under less stringent standards.
[…]
The European Commission is now close to finalising changes to tighten the scheme, which US carmakers fear would shut out the small number of large pick-up trucks currently allowed.
The changes, they claim, would run counter to the trade deal, under which the EU agreed not only to cut tariffs on US imports to zero but also to recognise American car standards, opening the door to more US-built vehicles.
“We would hope . . . issues like the IVA will be resolved in the spirit and consistent with the terms of that agreement,” Puzder said. “You can’t have low tariffs and massive non-tariff trade barriers and claim you’ve got a functioning relationship.”
The executive at the US carmaker said: “The US administration is aware that not only is Europe dragging its feet on the trade agreement, but they’re also looking at restricting US products and limiting customer choice in Europe.“
In a letter to commerce secretary and guy who spent at least one afternoon on a boat with Jefferey Epstein, Howard Lutnick, the American Automotive Policy Council (lobby group for Ford, GM and Stellantis) urged the Trump administration to block the EU’s decision to tighten IVA rules.
The Commission initiated a reform of the scheme in 2024 to close loopholes it said could allow unsafe cars on EU roads. The launch of the revised scheme is expected in 2027.
Since the EU-US trade deal was finalised, the Transport & Environment group has warned that allowing more “monster” US pick-up trucks on European roads would increase the risks for pedestrians, cyclists and other drivers.
Of the 7,000-ish Big Three pickup trucks sold in the EU in 2024, Ram — by far the worst selling of the Big Three in America — accounted for nearly 5,200. The Commission’s report characterized the Ram’s hood as “so high that children aged up to nine year old standing directly in front cannot be seen by the average driver.” That sort of thing is par for the course in the U.S., obviously, but European regulators aren’t quite as keen.
