US President, Donald Trump, threatened to run a trade war with Europe. How, by increasing import tariffs to 20 percent of all EU-made vehicles sent to the United States market.
The bluff was uploaded by Trump through its social media account on Friday, June 22, 2018, and was a countermeasure after the European Union raised tariffs on steel and aluminum imports from the United States. The EU is targeting exports of about $ 3.2B of goods from the United States to 27 EU member states.
"If these tariffs and barriers are not immediately revoked or eliminated, then we will impose a 20 percent tariff increase on the import of all their vehicles (EU)," Trump said,
Also read: Trump wants to ban German luxury car from the US market
Meanwhile, usatoday.com site on Saturday, June 23, 2018 proclaimed a number of German vehicle manufacturers threatened to lose money with this Trump threat. This trade policy was also considered unfair.
United States throughout 2017 recorded imports about 1.26 million vehicles per year from Europe. Evercore ISI data shows half of the amount comes from Germany and is a luxury car.
Currently, Europe imposed a 10 percent import tariff for cars from the United States into the Blue Continent. While the United States currently only impose 2.5 percent tariffs on imports for European-made cars and 25 percent of import tariffs for light truck type vehicles.
German vehicle manufacturers, including BMW, Mercedes, and Volkswagen, are reportedly supporting the trade war between the United States and the European Union to end soon.
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