Donald Trump pinches bite. The President of United States has threatened to apply a 20% tariff on imports of cars arriving from European side of Atlantic if EU does not "soon" lower its own vehicles from USA. Currently, levy paid across border is 10%. For European cars entering U.S., it's 2.5%. Trump has denounced since election campaign that this gap is unfair and penalizes his industry.
The White House tenant's announcement arrives on same day that EU begins to apply special tariffs on imported products from US in amount of 3.2 billion dollars. The European Commission explained last Wednesday that it is a measure to "rebalance" tariffs of 25% imposed on steel and 10% on aluminum since last June 1. It affects agricultural products and or goods that originate in regions very sensitive to Republicans.
Trump bonded His latest threat in form of ultimatum through a Twitter message, in a new escalation of clash between two — historically — allies. The US president has already ordered department of Commerce a month ago to investigate trade flows in automotive sector to act accordingly. "If se tariffs and barriers do not go down soon and are eliminated, we will apply a 20% tariff to all ir [Europe] cars arriving in U.S.," he warns.
Based on Tariffs and Trade barriers long placed on U.S. and it great companies and workers by European Union, if se Tariffs and barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of ir cars coming into U.S. Build m here!— Donald J. Trump (@realDonaldTrump) June 22, 2018
"Fabricate m here," he exclaims in tweet. Only two days ago, Secretary of Commerce, Wilbur Ross, said in a public appearance that re was no decision yet taken on wher tariffs applied to steel and European aluminum would be extended to or sectors, such as automotive industry. In any case, 20% tariff that Donald Trump now talks about would be less than 25% he quoted previously, but he is more specific.
Last year, 17.2 million cars were sold in U.S. market. Almost 7% of total are manufactured by European brands, which already have assembly plants in U.S. and Mexico to meet American demand. As a result of this new threat, European manufacturers ' titles suffered moderate declines that add to ballast y endure since more than a month ago when litigation escalated.
Trump's reaction to European tariff response occurs only a few days after three German car manufacturers — Daimler, BMW, and Volkswagen — forwarded US ambassador in Berlin who were favorable to completely eliminating tariffs Between two trade blocs. In this way y wanted to lower tension of last few weeks. The three companies and suppliers generate 116,500 jobs in United States.
It is not first time that Trump expresses his frustration with imbalance in trade relations with Europe, which cites directly Germany and its automotive sector. Commercial exchanges are around 1.1 billion dollars (1.28 billion euros) in both directions. The US deficit in goods amounts to 147 billion, but global declines to 92 billion when service surplus is incorporated into calculation.