When Trump raged against the European Union’s plan to retaliate against what they view as unfair tariffs on steel and aluminum exports to the US, the American president threatened more tariffs, eyeing Europe’s massive car industry in particular. According to his advisors, Trump is currently looking into the matter and might be considering a 20% tariff on European cars.
On Friday the EU sent an official notice to the White House to resist against car tariffs. In that document European officials explained that such a decision by the United States would have the worst effect on the American economy, which relies on the healthy competition of European-made cars, as well as a significant amount of automobile parts used in the manufacture of American vehicles. The President of the European Commission Jean-Claude Juncker will visit the White House in a few weeks in an effort to stay Donald Trump’s hand from further exacerbating the trade dispute.
In the alternative scenario where Europe gets slapped with car fees, the EU warned that the United States might face retaliation in tariffs on nearly $300 billion worth of American goods coming to Europe.
