Trump says 20 percent tariff on all U.S. imports of European Union-assembled cars could happen
President Donald Trump threatened to escalate a trade war with Europe.
Trump posted his threat on Twitter the day European Union reprisals took effect against U.S. tariffs on European steel and aluminium. The EU targeted $3.2 billion in American goods exported to the 28-member bloc.
“If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” Trump wrote.
A month ago, the administration launched a probe into whether auto imports pose a national security threat.
German automakers Volkswagen AG (VOWG_p.DE), Daimler AG and BMW AG build vehicles at plants in the United States. Industry data shows German automakers build more vehicles in southern U.S. states that voted for Trump than they ship to the United States from Germany.
The European Autos Stocks Index fell sharply after Trump’s tweet and closed down 0.5 percent. Shares of U.S. automakers Ford Motor Co and General Motors Co fell immediately after Trump’s tweet but rebounded and closed higher.
The Commerce Department has scheduled two days of public comments in July in its probe of the national security implications of imported automobiles and auto parts. Commerce Secretary Wilbur Ross said Thursday the department aims to wrap up the probe by late July or August, but added the probe is in its “early stages.”
Published: by Radio NewsHub