Europe Renews Pledge to Retaliate Against Any Trump Car Tariffs

Europe Renews Pledge to Retaliate Against Any Trump Car Tariffs

Bloomberg  | Sep 20, 2019 08:18

Europe Renews Pledge to Retaliate Against Any Trump Car Tariffs

(Bloomberg) -- The European Union’s trade chief reiterated a pledge to impose retaliatory tariffs against the U.S. should President Donald Trump follow through on a threat to hit the bloc’s automotive goods with duties.

European Trade Commissioner Cecilia Malmstrom criticized Trump’s assertion in May that EU cars and auto parts shipped to the American market pose a security risk to the U.S. The Trump administration faces a self-imposed deadline of mid-November to decide whether to curb such imports.

“We firmly reject that we are a security threat,” Malmstrom told a conference in Brussels on Friday. “That is absurd. If there will be tariffs there, we would take countermeasures.”

Transatlantic trade ties -- the world’s biggest economic relationship -- are approaching a crucial juncture largely in the shadow of the U.S.-China commercial war:

  • Planned EU-U.S. negotiations to eliminate duties on industrial products remain blocked by American demands to include agriculture in any market-opening deal
  • Both sides are set for a tit-for-tat tariff fight over aircraft aid deemed illegal by the World Trade Organization
  • Trump is keeping alive the possibility of automotive import levies
  • The EU is deeply concerned about a looming deadlock at the WTO’s appellate body, to which the U.S. has refused to consider any appointments on the grounds the forum’s members have strayed from their original mandate.
“Relations are tense,” said Malmstrom, a Swede whose five-year term as EU trade commissioner ends on Oct. 31. She is due to be succeeded by Ireland’s Phil Hogan, who is currently EU agriculture chief and who earlier this month called Trump “reckless.”

Last year, Trump infuriated Europe by declaring American imports of steel and aluminum a security threat and imposing levies of 25% and 10%, respectively, on shipments from around the world including the EU. That prompted the bloc to retaliate with a 25% tariff on 2.8 billion euros ($3.1 billion) of American goods such as Harley-Davidson (NYSE:HOG) motorcycles, Levi's (NYSE:LEVI) jeans and bourbon whiskey.

A 25% U.S. levy on foreign cars would add 10,000 euros to the sticker price of EU vehicles imported into the country, according to the Brussels-based European Commission, the bloc’s executive arm.

The value of EU automotive exports to the American market is about 10 times greater than that of the bloc’s steel and aluminum exports combined. As a result, European retaliatory duties would target a bigger amount of U.S. exports to Europe.

Caterpillar (NYSE:CAT) trucks, Xerox (NYSE:XRX) machines and Samsonite (OTC:SMSEY) luggage are among U.S. goods that would face such EU retaliation, a senior European official said in late February on the condition of anonymity.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Are you sure you want to sign out?
Saving Changes