EU vows swift response if US raises vehicle tariffs
Commerce department empowers Trump to apply duties within the next 90 days
Brussels — The EU promised a quick and effective response if the US imposes import duties on European cars, a spokesperson for the European Commission said on Monday.
Brussels issued the threat after the US commerce department filed a report on Monday that empowers President Donald Trump to apply car duties within the next 90 days.
German Chancellor Angela Merkel has labelled as “frightening” the prospect that this report could label European car imports as a national security threat to the US, enabling the tariffs.
The White House has already used the national security argument — saying that undermining the American manufacturing base impairs military readiness, among other claims — to impose steep tariffs on steel and aluminium imports.
“Were this report translated into action detrimental to European exports, the European Commission would react in a swift and adequate manner,” EU spokesperson Margaritis Schinas said in Brussels.
The protectionist Trump has threatened 25% duties on European cars, especially targeting Germany, which he says has harmed the American car industry.
In 2017 just under half of the 17-million cars sold in the US were imported, most of them produced in Canada and Mexico, which are expected to be exempt from any new car duties. German car groups exported 470,000 cars from Germany to the US in 2018, according to the VDA manufacturers’ federation.
The transatlantic flare-up followed a truce established in July, in which Trump and European Commission President Jean-Claude Juncker pledged no new tariffs while both sides pursued a limited trade deal.
Juncker “trusts President Trump’s word. The EU will stick to its word as long as the US does the same,” Schinas said.
Aside from economic matters, US-European ties have already been upended over Trump’s approach towards Iran and Syria, as well as other issues.