Trump Threatens to Impose Tariffs on European Cars
Trade tensions heat up as president vows to penalize EU if it retaliates against U.S. metals duties
President Donald Trump upped the ante in a brewing trade conflict stirred up by his announcement of steel and aluminum tariffs, saying the U.S. would impose tariffs on European car exports if the bloc follows through with retaliation against his metals duties.
“If the E.U. Some economists are worried tariffs applied unilaterally rather than through the World Trade Organization would generate a series of reprisals that could end in a trade war.
The European Union’s executive arm responded Friday that it would retaliate against any metals tariffs, saying it had put together a package of penalties that would affect a total of $3.5 billion in U.S. exports, including Harley-Davidson motorcycles, bourbon and denim.
Promising to “defend European jobs,” European Commission President Jean-Claude Juncker said “we must…show that we also take measures.” He added: “I don’t like to use the word ‘trade war,’ but I can’t say how this wouldn’t be warlike behavior.”
The EU’s retaliatory tariffs, if implemented, would hit quintessentially American exports, as well as making a political impact in Kentucky, the home state of Senate Majority Leader Mitch McConnell, and Wisconsin, the state that is home to House Speaker Paul Ryan and motorcycle maker Harley-Davidson .
Mr. Trump’s warning on Saturday, if pursued, would ratchet up pressure, targeting automobiles, which are responsible for a significant percentage of world trade.