Averting Tit-for-Tat Trade War: EU Threatens ‘Swift and Adequate’ Action for New US Tariffs

Written by | Tuesday, February 19th, 2019
@Eubulletin

The European Commission said that the bloc’s response would be “swift and adequate” if the United States decide to impose tariffs on European car. The warning came following a US report on whether car imports pose a security threat to the country. The US Department of Commerce submitted its findings to President Trump over the weekend who is about to decide what restrictive actions should be taken.

Europeans regard the conclusions of the report as leverage used by the US administration in ongoing trade negotiations with Brussels that seek to remove tariffs on industrial goods. The European Commission, however, says that the talks would carry on only if the US does not impose levies as it was agreed last July between President Trump and Commission President Jean-Claude Juncker.

“The European Union will stick to its word as long as the US does the same,” the executive’s spokesman Margaritis Schinas commented. She added that if the report “translates into actions detrimental to European exports, the European Commission would react in a swift and adequate manner.” At the moment, European automobile imports deal with tariffs of 2.5% to make their way to the American market while the EU imposes a 10% duty to US exporters.

EU Trade Commissioner Cecilia Malmstrom said that the EU executive was already readying to counterbalance measures in case Brussels finds itself in a situation to retaliate with new duties on vehicle tariffs. However, EU officials did not reveal further details. Washington has previously threatened to impose tariffs of 25% on vehicles manufactured outside the country. The National Automobile Dealers Association estimates that the tariffs would increase the cost of US-built cars by as much as $2,270 and the cost of imported cars and trucks by $6,875.

 

Article Categories:
ECONOMY & TRADE

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