European Union warns Donald Trump against auto tariffs, says retaliation would be 'swift'

19 Février, 2019, 03:25 | Auteur: Auguste Feret
  • Tariffs on millions of imported cars and parts will add thousands of dollars to cost of vehicles

"The European Union will stick to its word as long as the USA does the same", European Commission spokesman Margaritis Schinas told reporters, saying the EU wants improved trade relations with the U.S.

"It is critical that our industry have the opportunity to review the recommendations and advise the White House on how proposed tariffs, if they are recommended, will put jobs at risk, impact consumers, and trigger a reduction in USA investments that could set us back decades".

German Chancellor Angela Merkel has labeled as "frightening" the prospect that this report could label European vehicle imports as a national security threat to the United States, enabling the tariffs.

The vehicle dispute follows American tariffs on European steel and aluminum imports, brought using the same national-security justification.

Fortune reported that the USA now levies a 2.5 percent tariff on European imports and parts.

The renewed threat of auto duties calls into question a tentative truce reached in July.

The industry has warned that feared tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially lead to hundreds of thousands of job losses throughout the US economy.

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"I believe him", Juncker said. Section 232 of the Trade Expansion Act of 1962 gives the president authority to restrict imports and impose unlimited tariffs if a Commerce Department investigation finds a national security threat. "The European Union will stick to its word as long as the USA does the same".

The EU and the US have been trying to work out a trade deal but progress has been slow.

US tariffs on European cars would mark a significant escalation of trans-Atlantic tensions because the value of EU automotive exports to the American market is about 10 times greater than the bloc's steel and aluminum exports.

Since the summer summit, when Juncker made a commitment to buy more USA soybeans, exports to Europe have soared largely because of market conditions. That would especially affect German brands such as Volkswagen, Porsche and Mercedes-Benz.

German automobile groups previous year exported 470,000 cars from Germany to the United States, according to the VDA manufacturers' federation. Total European auto exports would fall by 18.4 billion euros, or 7.7 percent. "The biggest BMW factory is in SC, not in Bavaria".

"Look, we're proud of our cars and we should be allowed to be".

The report was said to have contained findings of a government probe into whether imported vehicles pose any national security threat.

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