Trump threatens 20 percent tariffs on European Union cars

Trump threatens 20 percent tariffs on European Union cars

Trump threatens 20 percent tariffs on European Union cars

In response to Trump's new policy, the European Union started enforcing tariffs on American imports like bourbon, peanut butter and orange juice.

US President Donald Trump on Friday threatened to slap a 20 per cent tariff on cars imported from European Union, escalating the trade war he began last month against various countries including China and India.

The decision to expand the Trump administration's trade disputes to foreign auto manufacturers has come under fire from some in the US Congress, as well as many business lobby groups.

"The BMW Group has been a committed corporate citizen in the U.S. for more than a quarter-century", said the company when asked for a comment on Trump's latest threat.

China is also planning to impose additional tariffs of 25% on chemical products, medical equipment and energy imported from the USA, with a value equalling US$16bn. Industry data shows that German automakers build more vehicles in southern USA states that voted for Trump in the 2016 presidential election than they ship to the United States from Germany.

He said Thursday that the Commerce Department hopes to complete the investigation by the end of July or August. With Trump's latest salvo, he threatened tariffs on up to $450 billion in China's exports, out of a total of just over $500 billion in goods sold to the United States.

Leaders in China and South Korea have already said they will monitor the situation closely and react accordingly to protect the interests of brands in their countries.

"Of the 1.3 million German cars sold in the United States, more than 800,000 were made on American soil". "Any attempt to increase taxes on German cars would have a larger effect on BMW and Mercedes, and a lower effect on Volkswagen, as most of the sales of the premium brands correspond to imported models (63% for Mercedes and 64% for BMW)".

German automakers did not comment on Trump's tweet. "Automakers support reducing trade barriers across the board and achieving fairness through facilitating rather than inhibiting trade".

Mr Trump launched the investigation last month, ordering the Commerce Department to determine if vehicle imports are a risk to national security.

The tariff proposal has drawn sharp condemnation from Republican lawmakers and business groups.

Cecilia Malmstrom, the EU's trade commissioner, acknowledged that the European Union had targeted some iconic American imports for tariffs, such as Harley-Davidson motorcycles and bourbon, to "make noise" and put pressure on U.S. leaders.

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