EU: If Trump targets European cars, $39 billion in US goods will undoubtedly be on block’s hit list
European Trade Commissioner Cecilia Malmstrom has warned that EU will retaliate with extra duties on €35 billion ($39.1 billion) worth folks goods if Washington imposes punitive tariffs on European-made cars.
“We will not accept any managed trade, quotas or voluntary export restraints and, if there have been to be tariffs, a rebalancing will be had by us list,” the European Union’s trade chief told a committee of the European Parliament.
She added: “It really is already prepared basically, worth 35 billion euros. I really do hope we don’t need to use that certain.”
The announcement follows President Donald Trump’year of possible tariffs on European cars arriving at the united states s threats last. The Commerce was asked by him Department to look at whether such imports were threats to national security, the nice reason given for imposing tariffs on steel and aluminum imports. The European commission vowed to retaliate by taxing $20 billion worth folks imports to the bloc, if the measure was implemented.
In May, Trump made a decision to delay the promised duties of 25 % on European and Japanese cars by around 180 days so that they can clinch a highly effective trade cope with its partners. The six-month delay period leads to mid-November.
“We welcome your choice by the united states never to impose duties on car and cars parts, but needless to say the notion that European cars could be a national security threat to the united states is absurd,” Malmstrom said, adding that trade talks with the united states had produced mixed results.
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“We’ve not started those negotiations still. The US isn’t prepared to start them if agriculture isn’t included, that is a red line for all of us. So for the brief moment, nothing here happens,” the EU trade chief said.
Trump has refused the EU offer to scrap levies on mutual imports of vehicles, saying the proposal is “bad enough” while being truly a one-sided deal favoring Europe. He also compared the EU to China in what he referred to as their unfair trade practices which have resulted in America’s growing trade deficit.
Under the existing trade agreement, Washington levies a 25 % tariff on light pickups and trucks, and 2.5 percent on smaller vehicles from Europe, while Brussels imposes a ten percent tariff on all motor cars imported from the united states.
Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.