"Based on the Tariffs and Trade Barriers long placed on the USA (...) 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". It's reported that Trump said the tax would be upheld until Fifth Avenue was devoid of Mercedes models.
The European Union will react to U.S. president Donald Trump's import tax on cars shipped from Europe, a vice-president of the European Commission has warned.
Shares of Volkswagen, Daimler and BMW fell in Frankfurt, and USA auto companies erased earlier gains in NY trading.
The European Union has promised to respond to any USA tariff hikes on European cars.
The new tariffs affect American products such as orange juice, bourbon whiskey, motorcycles, sweetcorn, and peanut butter.
In return for the threat given by Trump, China has cleared that it won't sit quietly with the blackmailing from the United States and is prepared to fight back with full force. Just as he did last week, Trump singled out the. However, the unilateral and unjustified decision of the U.S. to impose steel and aluminium tariffs on the European Union means that we are left with no other choice.
The United States now imposes a 2.5 percent tariff on imported passenger cars from the European Union and a 25 percent tariff on imported pickup trucks. In the wake of Trump's tariff threats, there was a sharp fall in the European Autos Stocks Index.
The administration is now examining whether imports of cars and trucks pose a threat to national security, using the same law that it employed to slap tariffs on steel and aluminum imports.
Customs agents across Europe's colossal market of 500 million people will now impose the duty, hiking prices on US-made products in supermarkets and across factory floors.
Mr Trump yesterday slammed the decision as "an excuse".
Mr Trump's tariff rhetoric further undermines a U.S. auto market already in its second year of decline after record sales in 2016, said Cody Lusk, president of the American International Automobile Dealers Association. The revenues from European Union countries were second only to that of the US. The announcement came a month after his administration began investigations on whether auto imports were a threat to national security.
"We want President Trump to change his mind".
The U.S. Chamber of Commerce said U.S. auto production had doubled over the past decade, and said tariffs "would deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war". "Consumers fare best when tariffs are low", Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, said in a statement. He pointed to Daimler's decision on Thursday to pare its profit outlook as an early example. "With Brexit and USA tariffs, this market could shrink further", they said.