US President Donald Trump is threatening the EU with 20% tariffs on European cars in what would amount to a major escalation in a developing trade war.
Trump’s auto tariff threat comes after the European Union retaliates to US steel and aluminum tariffs.
POTUS Trump issued the warning on Friday as the EU imposed tariffs on a wide range of US goods ranging from Bourbon whiskey to motorcycles and playing cards.
The EU imposed the “rebalancing” charges in response to Trump’s 20% tariffs on European steel and aluminum.
Trump doubled down on his auto tariff threat in an interview with Fox News’ Maria Bartiromo…
“They send a Mercedes in, we can’t send our cars in…But we don’t protect ours and they protect theirs.”
Trump said in a statement posted on twitter…
“Based on the tariffs and trade barriers long placed on the US and it great companies and workers by the European Union, if these tariffs and barriers are not soon broken down and removed, we will be placing a 20 per cent tariff on all of their cars coming into the US. Build them here!”
Here is Trump turning the screws on Merkel and her Brussels technocrat peers, as an automobile tariff for German cars, exported into the US, has the potential of crashing the German economic machine.