US to escalate 20% on imports on EU cars

Washington, June 23: President Donald Trump on Friday threatened to escalate a trade war with Europe by imposing a 20 percent tariff on all U.S. imports of European Union-assembled cars.

 

Trump posted his threat on Twitter the day European Union reprisals took effect against U.S. tariffs on European steel and aluminum. The EU targeted $3.2 billion in American goods exported to the 28-member bloc.

“If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” Trump wrote.

A month ago, the administration launched a probe into whether auto imports pose a national security threat.

On the other side, European Union has slapped tariffs on iconic US products including bourbon, jeans, and motorcycles in its opening salvo in a trade war with President Donald Trump.

Brussels imposed the raft of duties on US products worth 3.3 billion dollars in a tit-for-tat response to Trump's decision to slap stiff tariffs on the European steel and aluminum exports.

Customs agents across Europe's colossal market of 500 million people will now impose the duty, hiking prices on US-made products in supermarkets and across factory floors.

EU Trade Commissioner Cecilia Malmstrom said this week that the 28-nation bloc was left with no other choice but to impose tariffs of its own after the unilateral and unjustified decision of the US.

Recently German Chancellor Angela Merkel had said European Union (EU) will implement counter-measures against US tariffs on Steel and Aluminium just like Canada. In an interview following the G7 summit, Merkel said the European Union is preparing counter-measures against US tariffs on steel and Aluminium imports, in line with World Trade Organisation rules.

And also the Finance Ministers of Group of Seven nations had urged Trump to reverse his decision to impose new tariffs on steel and aluminium imports.