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If EU will capitulate to Trump and say more deaths are reasonable, that is a policy on EU level, right? If the countries enforce a higher standard that means nothing. Sure, it is probably unlikely, like if a small country have stricter regulations they will get a less competative market that in other EU countries who also follow Trump. But in principle, or am I mistaken?
I don't think that that's possible by EU rules. The single market is a very important tenet of the EU, and that works best if a company only has to comply by a single set of regulations to cater to the whole market.
I am not sure how permissible it is for countries to require higher standards than the EU when it comes to road safety. Also what would be the consequences? Pulling American looking cars out at the border and sending them back? That will be quite the headache for Schengen.
They'll just forbid the sale of these vehicles locally, finger crossed for enough states to do that. Citizens will also have the civic duty to harass these vehicle owners.
I think in other areas -- but I may be mistaken -- EU regulation looks like "member countries must implement X or stricter rules". If a country fail to implement it, it gets a fine. But yeah, I'm not sure either if it is permissible. The consequences would be that companies would not import cars to the EU that they cannot sell in any EU country.
Implementing a standard at the dealership or registration level would be practical. Cross boarder traffic would make the effect incomplete but probably still impactful.