Trump threatens 20 per cent tariff on European Union cars

Bourbon was among the products to be hit with a tariff

Shares in European Union auto manufacturers fell on Friday after US President Donald Trump threatened to impose a 20 percent tariff on cars imported from the bloc, traders said.

Earlier in the week, the European Commission said it would start charging import duties of 25 per cent on a range of USA products from Friday after Washington imposed tariffs on EU steel and aluminum at the start of June.

At 11:25 a.m. ET, Trump tweeted that if the European Union didn't break down "trade barriers", the United States would be slapping a 20 percent tariff "on all their cars coming into the U.S".

"By linking the threatened imposition of USA tariffs to European Union tariffs imposed on US autos, the President has both short-circuited the 232 process and conclusively undercut the stated national security rationale of that investigation", said Daniel Price, a former senior economic adviser to President George W. Bush.

"The president has been so belligerent that it becomes nearly impossible for democratically elected leaders - or even a non-democratic leader like (Chinese president) Xi Jinping - to appear to kowtow and give in", said Philip Levy, senior fellow at the Chicago Council on Global Affairs and a former White House trade adviser.

The United States attacked first, imposing tariffs on steel and aluminum from around the globe and threatening to hit tens of billions of dollars in Chinese products. Trump has already imposed tariffs on European steel and aluminum, and Europe on Friday imposed countertariffs on goods ranging from whisky to motorcycles.

EU Trade Commissioner Cecilia Malmström said this week that the 28-nation bloc was "left with no other choice" but to impose tariffs of its own after the "unilateral and unjustified decision of the USA".

China is also planning to impose additional tariffs of 25% on chemical products, medical equipment and energy imported from the U.S., with a value equalling US$16bn.

It's worthing noting that, before Trump triggered a trade war, US exports to the European Union faced an average tariff of just 3 percent; America's domestic carmakers were already highly profitable; and most major foreign automakers operate large plants in the United States.

In late May, the USA announced new tariffs of up to 25 percent on steel and aluminum imports from US allies like Mexico, Canada, and the EU.

German automakers Mercedes, BMW, and Volkswagen all have plants in southern states and directly employ more than 20,000 U.S. workers between them, primarily at those factories.

"BMW's largest plant in the world is based in Spartanburg, South Carolina, and export cars from the United States to other countries".

While the European Commission has previously voiced a desire to "remove these duties and other barriers to trade", Trump's frustration at import boundaries appears to have provoked his latest warnings. It has a plant in Chattanooga, Tennessee, but it still imports some models from Germany.

Trump has repeatedly singled out German automotive imports to the USA for criticism.

Donald Trump has threatened to levy import tariffs of 20% on European cars.

Another one of Trump's Friday morning tweets was directed at Mexico, and he took on a much friendlier tone than usual when discussing the NAFTA partner's trade and immigration policies.

The tit-for-tat conflict between the United States and China - the world's two largest economies - is poised to escalate from there. If this investigation finds that the "national security" of the United States is compromised by a reliance on imports, than tariffs can be imposed.

Meanwhile, the US Chamber of Commerce noted that American auto production has doubled over the past decade, and said tariffs "would deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war".

Mercedes is expected to sell about 20,000 convertibles this year in the United States and BMW fewer than 16,000, LMC projected. It accounts for 5 percent of Volkswagen's VW brand sales and 12 percent of its Audi brand sales.

Related News:

  • First Lady Melania Trump Visits Border Detention Facility In Texas

    First Lady Melania Trump Visits Border Detention Facility In Texas

    The prosecutions had been mandatory under the administration's "zero tolerance" policy, which was unveiled in May . After a downturn a year ago , the flow of migrants from Central America and Mexico has surged since October.

    North Korea returns remains of 200 U.S. soldiers

    The president said the meeting with Kim was "wonderful." but the media refuses to cover the summit in an accurate light. Kim concluded his China visit late on Wednesday and departed Beijing for the DPRK.
    What Pepe did during Portugal's win vs Morocco was disgraceful

    What Pepe did during Portugal's win vs Morocco was disgraceful

    Ronaldo has struck 23 times in his past 18 matches for his country, with 15 of those goals coming in World Cup qualification. When they managed to stop appealing and resumed play, Morocco looked unsafe and were the dominant side in the second half.
  • Priyanka Chopra and Nick Jonas PDA game going strong!

    Priyanka Chopra and Nick Jonas PDA game going strong!

    But recently, Priyanka Chopra is reigning the headlines for her alleged relationship with American singer-songwriter Nick Jonas . The duo made no attempt to hide from the paparazzi as they were snapped while entering and exiting a restaurant on Friday night.

    U.S. court backs states over web sales tax

    Three identical bills were filed during the special session to match Louisiana's law with South Dakota's in case the U.S. Wayfair (W), Etsy (ETSY) and eBay (EBAY) all dipped in early trading Thursday immediately following the ruling.
    STAR WARS 'Anthology' Films Put on Hold

    STAR WARS 'Anthology' Films Put on Hold

    On the small screen, we will be getting the Jon Favreau live action and Dave Filoni Star Wars Resistance animated series. It appears that Solo: A Star Wars Story may be the last spin-off you see for a while from the galaxy far, far away.
  • 'No hidden message' in Melania Trump jacket, spokesperson says

    'No hidden message' in Melania Trump jacket, spokesperson says

    Grisham sent out a tweet saying the first lady's visit with children in Texas impacted the first lady "greatly". There was her distance from Trump in the wake of the stories her husband had an affair with a porn star.

    Instagram expands into long videos to compete with YouTube

    People wanting to watch a one hour video on their TV, for instance, won't enjoy wasted screen real estate and black bars. This means you can use the IGTV service without either alienating an IG-centric audience or being alienated yourself.
    Trump digs in on immigration amid family separation crisis

    Trump digs in on immigration amid family separation crisis

    Nielsen said that releasing parents with their children amounts to a "get out of jail free card" policy for illegal immigrants. Children traveling with adults are separated from their families and taken into USA custody.
  • The Atlanta Hawks Are Reportedly Discussing A Major NBA Draft Trade

    The Atlanta Hawks Are Reportedly Discussing A Major NBA Draft Trade

    If Doncic is still there at four, a bunch of teams will be looking to move up, including the Chicago Bulls . Doncic played global ball for Real Madrid and in exhibitions against National Basketball Association teams.
    Mexico's World Cup Goal Sparks Seismic Activity

    Mexico's World Cup Goal Sparks Seismic Activity

    Marquez took to the field toward the end of Sunday's match against Germany , notching his fifth appearance in a World Cup . Mexico's goalscoring hero Hirving Lozano has been backed to play in the Premier League by manager Juan Carlos Osorio.
    Meghan Markle's father: She's wanted children for a long time

    Meghan Markle's father: She's wanted children for a long time

    She finished off the look with a black-and-white hat from Philip Treacy and black heels. Meghan wasn't the only royal to not wear her name tag this year.


Most liked

Slain US rapper XXXTentaction missed out on being a dad
Sources close to XXX say that his most important objective in life was to take care of those around him. The 20-year-old musician was facing charges of domestic violence at the time of his murder.

'Good news, but it's not a windfall' in Washington state
We applaud state legislators who took the initiative in the 2017 Indiana General Assembly to prepare for this hoped-for decision. They instead suggested that Congress should pass legislation simplifying online sales tax to create a level playing field.

South Korea Vs. Mexico Betting
Mexico coach Juan Carlos Osorio said he prepared more for the match against South Korea than for the game against Germany . Mexico so far is one of the teams that has a flawless run in the campaign and has conceded just one goa.

France defense excels in 1-0 victory over Peru in Group C
France are unbeaten in their last eight World Cup fixtures against CONMEBOL opposition (W4 D4). Subs used: Farfan (7), Santamaria (5), Ruidiaz (5). "I don't vote for the man of the match ".

Melania Trump's jacket raises eyebrows for edgy message
The youthful jacket sharply contrasts with the first lady's typically bold, foreign-flavored wardrobe . Since the Stormy Daniels stories began, Melania has been noticeably absent from her husband's side.

China hits back at Pompeo; accuses USA of blackmail tactics
Navarro also indicated that no trade talks with China were planned but said the administration was willing to hold discussions. The major averages all finished the session in the red, although the Dow underperformed its counterparts by a wide margin.

Prince Louis to be christened by the Archbishop of Canterbury next month
Kate Middleton and Prince William's third child will be christened next month, Kensington Palace announced in a statement. On Saturday, Prince Harry and Meghan Markle were spotted at Celia McCorquodale and George Woodhouse's nuptials.

The new cover of TIME forces Donald Trump to face immigrant children
The mother and child were put into a van and driven off soon after, presumably to a detention center for processing. President Trump on Wednesday signed an executive order aimed at halting the family separation policy.

AMC announces Stubs A-List, its new $20 subscription movie pass
In response, MoviePass tweeted that AMC's plan is 'Twice the price for 1/4 the theater network and 60% fewer movies. AMC's Stubs A-List launches June 26, and it should be interesting to see how it does in comparison to Moviepass.

Rick Zamperin: Phil Mickelson gave USGA the middle finger with bogey putt
He trotted after it and when the ball was about 15 feet beyond the hole, and still trickling, he hit it back towards the cup. Mickelson went on to shoot a round of 81 and sits third last of those that made the halfway cut on 17-over par.

Don’t return home if you lose to Nigeria, Maradona warns Argentina coach
The Barcelona great has often had a turbulent relationship with the Argentine media. Croatia is leading Group D after beating Nigeria 2-0. "It's going to be hard ".

Brazil and Switzerland Draw in Tense Match
We have to be very cohesive as a team and close the gaps when we confront those individual players. But coach Tite acknowledged his side could have played better.

Cristiano Ronaldo wins games on his own
It's great news for subscribers of the theory that for a World Cup to be successful, you need the host nation to progress. That should make it an easier day for Suarez, who has 51 global goals and is Uruguay's all-time top scorer.

Plane carrying Saudi Arabia's World Cup team catches fire
The South American side are set to field a side containing seven players aged 31 or over in their Group A clash in Rostov-on-Don. The players could be seen leaving the plane - a Russian Airlines Airbus A319-100 - shortly after landing.

Corey Lewandowski Mocks Story of Girl with Down Syndrome Separated from Mother
Their father, a legal U.S. resident, is working with the United States consulate to get the girl released. As children can not be held in adult facilities, families are broken up.