Trump threatens more tariffs on European Union imports
23 June, 2018, 22:46 | Author: Eric Barnett
President Donald Trumpthreatened Friday to slap 20 percent tariffs on European cars in retaliation for tariffs that the European Union imposed on the U.S.in retaliation for an original set of tariffs that the USA imposed on global steel and aluminum imports.
The new increased tariffs by the European Union come after the USA adopted its increased tariffs on steel and aluminium imports at the beginning of June, despite threats of reprisals from the EU.
Sources said India's decision not to raise duties with immediate effect and exempt Harley Davidson bikes are goodwill gestures aimed at keeping alive the possibility of negotiating trade disputes when assistant US Trade Representative Mark Linscott visits India next week.
US President Donald Trump threatened today to impose a 20 per cent tariff on cars imported from the European Union, after the bloc's additional tariffs on dozens of American products took effect. They don't take our cars. By the way, you're not going to sell us any.' Not going to work that way anymore, folks. A bulk of these products figured in a list of items imported from the USA, alongside other countries.
German auto industry association VDA said Germany exported 657,000 cars to North America, 7 percent less than a year earlier, and 200,000 fewer cars than in 2013.
The announcement was sharply criticized by parts of the United States auto industry, who said the tariffs would raise vehicle prices for Americans.
Wirtschaftswoche reports that the comments, made to Macron and reported to the media via several EU and USA diplomats, could spark a trade war between the United States and the EU, with Germany's auto industry being a heavy source of income to the union.
European countries have been bracing for this 20% tariff, according to two European officials.
The Alliance of Automobile Manufacturers, representing major USA and European automakers, said "tariffs raise vehicle prices ... limit consumer choice and invite retaliatory action by our trading partners".
The officials have said the Germans have proposed a removal of tariffs between the European Union and United States and the USA is willing to look into this possibility before the tariffs go into effect.
European automakers already make some cars in the United States.
BMW's plant in Spartanburg, South Carolina, builds X-series sport utility vehicles while the Mercedes plant near Tuscaloosa, Alabama, builds GLE and GLS utility vehicles and the C-Class sedan. "EU manufacturers do not only import vehicles into the U.S. They also have a major manufacturing footprint there, providing significant local employment and generating tax revenue", Jonnaert said in a statement.
White House trade adviser Peter Navarro, who viewed China as a rival economic and military power, had said Beijing had more to lose from a trade war. On Friday, he repeated the threat and attached a specific number, tweeting about a 20 percent tariff on all automobile imports from Europe. While the results of that investigation are still weeks away, Trump raised the specter of tariffs on Twitter.
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Her comments came after one of the Government's junior ministers appeared to break ranks to criticise the USA for its actions. Prime Minister Theresa May's spokesman said of the cages: "What I would point you to is the UK's own immigration policy".
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