The EU Has No Easy Answers to Trump's Car Tariff Threats

Lloyd Doyle
July 7, 2018

The US ambassador to Germany reportedly told German vehicle executives on Wednesday that Washington would agree to solve an auto trade dispute with Brussels if both the European Union and the United States abolished their tariffs on each other's cars.

Bloomberg is reporting German auto-industry executives met with U.S. Ambassador to Germany Richard Grenell Wednesday. Reuters reports that Grenell has told industry executives that Trump may abandon his threats if the European Union ditches its tariffs on us -built vehicles. It said the chief executives of Daimler, BMW and Volkswagen - Dieter Zetsche, Harald Krueger and Herbert Diess respectively - were in attendance. According to World Trade Organization rules, the European Union would also be required to make similar reductions on vehicles imported from other countries.

A European Commission spokeswoman declined to comment on the report.

The EU, which administers trade policy for Germany and the rest of the bloc, now levies a 10 percent duty on auto imports from the US. The report said the tariffs could possibly trigger higher USA industrial costs, raise consumer prices, hurt exports and cost jobs.

Mr Trump hit the EU, Canada and Mexico with tariffs of 25 per cent on steel and 10 per cent on aluminium at the start of June, ending exemptions that had been in place since March.

Other reports by Iphone Fresh

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