The European Union (EU) will respond to any US measure increasing the tariffs on imports of cars produced in the Union, said European Commission Vice-President Jyrki Katainen.
US President Donald Trump escalated the trade dispute on Friday (June 22nd) when he threatened a 20 percent clunk on all cars produced in the EU. Approximately one month ago, his administration began to investigate whether car imports could not jeopardize national security.
If they decide to raise their import duties, we will not have another chance to respond, “said Katainen for the French daily Le Monde.” We do not want to publicly argue about the Twitteri business. We should end the escalation. ”
European automakers’ shares weakened on Friday following the announcement of the Trump threat. However, shares of American manufacturers Ford Motor and General Motors also dropped.
Trump at Twitter said the EU has long been applying tariffs and other barriers to US and US firms. “If these tariffs and barriers are not quickly abolished and derailed, we will impose a 20 percent duty on all their cars coming to the US,” Trump wrote on Twitters Friday. “Get them here,” he added.
The US Department of Commerce is due to find out by February 2019 at the latest whether imports of cars and car parts pose a risk to US national security. Trade Minister Wilbur Ross said on Thursday (June 21st) that the ministry will complete its investigation at the end of July or early August.
The design of car import tariffs has prompted sharp criticism from both business groups and Republican lawmakers. The American Chamber of Commerce said that the duties would cause a great shock and blow to the industry they want to protect and could lead to a global trade war.