EU Warns US Against Car Tariffs


The admonishment, written in a letter to US authorities dated Friday, came as US President Donald Trump said Europe is "possibly as bad as China" on trade in one of his biggest provocations to his country's longtime transatlantic allies.

The Trump tariffs would violate worldwide trade rules, the commission said, adding that European vehicle imports into the United States do not pose a threat to the American automobile industry.

Using a state-by-state analysis, it argues that Trump is risking a global trade war that will hit the wallets of US consumers.

This comes after President Trump pointed out that the European Union is charging an unfairly high tax on American-made cars.

The EU leaders agreed "in substance" on Thursday (28 June) on a set of proposals to improve the World Trade Organisation, which should pave the way for finding common ground with US President Donald Trump and de-escalating the ongoing trade dispute. The EU, Mexico, Canada, Turkey and India introduced duties on US products in return.

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"No, no, no, no", he said, noting that more tariffs could be imposed if there is no deal with China.

The European Commission said in a letter that they would hit $300 billion of U.S. goods with tariffs if needed.

SC is not the only state expected to suffer, Iowa pork producers could lose $560 million from a Mexico tariff on the product.

It shows the depth of Chinese concern about a trade war with Washington, as Trump is set to impose tariffs on billions of dollars worth of Chinese imports on July 6.

"Despite Trump's bluster, trade wars should not be invited and are never easy to win", said Pascrell, a member of the House Ways and Means Committee, which oversees trade issues.

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Retaliation for his tariffs came swiftly.

On Monday, the European Union warned that $300 billion in USA exports could be hit by retaliatory tariffs.

The EU has a 10 per cent tariff on cars compared to 2.5 per cent for cars entering the US.

Trump has implemented billions of dollars in tariffs targeted at China, Canada, Mexico and the European Union, saying such moves are needed to offset trade imbalances.

Canada's retaliatory tariffs took effect Sunday against American products including Florida orange juice, ketchup and Kentucky bourbon.

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As well as the tariff threats, the European Commission is also believed to have warned Trump that his behaviour could "result in yet another disregard of global law" by the U.S., as well as saying that any auto tariffs would "damage further the reputation" of the country.