Determinants of a European Union-US trade deal: cars, agriculture and Trump

The level of tariffs on cars and agriculture has emerged as a key sticking point in talks between the European Union and the US as they work towards an interim trade deal in the coming days, according to people familiar with the talks. The European Union is seeking tariffs of no more than 10 per cent on agricultural exports, the people said. An offsetting mechanism that some carmakers had previously pushed for in exchange for tariff relief on companies' investments in the US is not being considered because the European Union fears it could shift production across the Atlantic. European Union negotiators are now focusing on the auto tariffs, the people added, speaking on condition of anonymity because the discussions were not public.