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Trump threatens tariffs on EU cars
President Donald Trump has fueled trade war fears by pledging to impose
tariffs of 20pc on imports of EU cars if trade barriers are not
"broken down".
The EU on Friday brought into force
extra taxes on flagship US goods such as Kentucky whiskey, Levi Jeans,
and Harley Davidson motorcycles in response to Mr Trump's levies of 25pc
on steel and 10pc on aluminium imports.
This latest tit for tat step marks a further stage of escalation in
the mounting trade war between the US, its closest allies and
China since Mr Trump ignited a trade conflict with metals levies.
Trump’s new threat comes after the EU imposed tariffs on a range of
US consumer goods in response to steel and aluminium tariffs from the
White House, which could increase the cost of consumer goods by £200m
per year in the UK alone.
Should Trump carry through the levies, it would have damaging
consequences for jobs and economic growth on both sides of the Atlantic.
Leaders from American and European car manufacturers have previously
said such measures would lead to net job losses in the US.
