EU shows red-eye to US over auto tariffs

Brussels, July 3: The European Union warned that up to 294 billion dollars worth of US exports would face counter-measures if President Donald Trump went through with his threat to slap duties on auto imports on Monday.

 

Trump has singled out the Europeans as a problem as great to the US on trade as China and laid out threats to fight the EU with a 20 percent duty on EU auto imports, a particular source of his scorn.

Trump's threat was the latest salvo in an escalating trade war that saw the EU slap duties on US-made jeans and Harley Davidson motorcycles in a tit-for-tat response to US tariffs on European steel and aluminium exports.

Recently, German Chancellor Angela Merkel has 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.

She said European Union won't let itself be ripped off again and again, instead of EU act then too. Merkel also said the G7 leaders had agreed to review their trade ties and assess the scope of existing tariffs to avoid further trade barriers.

Earlier the United State had imposed a 25 percent of tariff on steel imports and 10 percent tariff on aluminum imports from the EU, Canada, and Mexico.

Voicing regret about President Donald Trump's abrupt decision to withdraw support for a G7 communique she said the withdrawal, via tweet, is of course, sobering and a bit depressing.

Trump's announcement on Twitter that he is backing out of the joint communique, torpedoed what appeared to be a fragile consensus on a trade dispute between Washington and its top allies.

Merkel also brushed aside Trump's suggestion that Russia should be readmitted to the group of the world's leading economies.