The European Union Says It Will React if Trump Tweaks Car Tariffs

The European Union Says It Will React if Trump Tweaks Car Tariffs

The European Union Says It Will React if Trump Tweaks Car Tariffs

In an interview, the European Commission President Jean-Claude Juncker was quoted saying the United States President Donald Trump has promised that he will not impose additional import tariffs on European cars for the time being.

A confidential U.S. Commerce Department report sent to Trump over the weekend is expected to give Trump weapon to threaten tariffs of up to 25 percent on imported autos and auto parts by designating the imports a national security threat.

“Trump gave me his word that there won’t be any car tariffs for the time being. I view this commitment as something you can rely on,” Juncker told the German daily Stuttgarter Zeitung in an interview.

However, he did not specify when the promise was made.

He also said if Trump imposed tariffs on European cars; nonetheless, the EU would react immediately and would not stick to its promise to buy more soybeans and liquefied gas from the United States.

The contents of the U.S. report are supposed to remain classified while Trump considers its recommendations, leaving the industry and significant car exporters such as Germany, Japan, and South Korea in the dark about its consequences.

As per Auto industry officials, they are expecting the report to recommend at least some tariffs so that the administration can use the findings of the inquiry as negotiating leverage during negotiations this year with Japan and the EU.

A European Commission spokesman said on Monday the EU aimed to improve trade relations with the United States but would react in no time if Trump decided to hit EU car imports with tariffs.

“The European Union will stick to its word as long as the U.S. does the same,” spokesman Margaritis Schinas said.

It should be noted that any U.S. tariffs on European cars would hit Germany’s important automobile industry particularly hard. U.S. is Germany’s most important single export destination after the bloc of EU countries.

Reportedly, the BDI industry association called on the U.S. administration to give more clarity and publish the findings of the national security report swiftly.

“The U.S. Department of Commerce should now publish its report on automobile imports quickly, so as not to further increase business uncertainty for companies,” BDI President Dieter Kempf said on Monday.

“The import of automobiles is not a threat to U.S. national security, and U.S. President Donald Trump must abide by applicable trade law, and he should refrain from imposing any tariffs or quotas,” Kempf said.

About the Author /

Scott Jakubowski has been working in the world of finance and business as a news writer from almost a decade. He recently joined FinanceNews.Global team. His current focus is on finance, whether it's a personal or government. He writes in-depth news on reported stories. In his spare time, he loves to travel and playing guitars.

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