Trump Threatens 20% Tariff On European Cars After EU Retaliates With Its Own Taxes

America’s trade war appears to be spiraling out of control, as President Trump has threatened to place a 20 percent tariff on all cars imported from the European Union to the United States.

In a tweet, Trump complained the European Union has placed “tariffs and trade barriers” on the U.S. and its companies for too long, and if they are “not soon broken down and removed,” a tariff on all cars built in the EU will go into effect.

The tweet comes on the same day that the European Union retaliated against the United States for imposing tariffs on aluminum and steel imports from Europe. The counter tariffs went into effect this morning and target American goods worth approximately $3.2 (€2.8) billion.

Among the items subject to a new 25 percent tariff are corn, rice, orange juice, whisky and an assortment of tobacco products including cigars and cigarettes. The tariffs are also being applied to t-shirts, steel, stainless steel, motorcycles, motor boats, sailboats and yachts.

In a statement, EU Commissioner for Trade Cecilia Malmström said “The rules of international trade, which we have developed over the years hand in hand with our American partners, cannot be violated without a reaction from our side. Our response is measured, proportionate and fully in line with WTO [World Trade Organization] rules.” Malmström added the EU “did not want to be in this position” and promised to drop the counter tariffs if the US retacts its tariffs on aluminum and steel imports.

Trump’s latest threat comes shortly after he directed Commerce Secretary Wilbur Ross to investigate whether or not automotive imports are a threat to America’s national security. The investigation is ongoing but reports have suggested imported cars could be subject to a tariff of up to 25 percent.

Besides fighting with the European Union, the United States recently announced plans to implement a 25 percent tariff on $50 (€42.9) billion worth of goods from China including automobiles. A GM spokesperson has already confirmed the Buick Envision will likely be impacted by those tariffs and reports have suggested the crossover’s price could climb by $8,000 once the tariffs go into effect on July 6th.

  • pxsupply

    And the loser is…. as always…. The Middle Class

    • LeStori

      Never good to be in the Middle. In a car it is uncomfortable. Same in a plane. Jammed between two other people.

  • Elmediterraneo

    That old blondie fool wants you to buy crappy US cars because of his MAGA bullshit blah… blah… blah…
    But what he didn’t get is that european luxury cars are meant to be expnesive so the people that are willing to get german cars will pay the price to avoid getting a shitty american cars.

    • Wadsworth Van Hagar

      Manipulating America’s Gullible Assholes

    • FlameWater

      So if wealthy people can still afford the tariffs what is the issue?

    • Ron

      I dislike this trade war as much as anyone and I certainly did not vote for nor do I support the crazy orange man. However, when I see people like yourself bash American cars for no good reason it nearly makes me want to say bring it on! American cars have certainly had a challenged history but they are equally as good as every other manufacturer today and certainly aren’t “shitty” or “crappy” as you so childishly put it.

      I have owned many foreign cars, two Audis, two Acuras, two BMWs, a Mini and a Lexus to be exact, but my last two have been American made. I can say from actual experience that they have both been two of the most reliable and best cars I have ever owned.

      • john1168

        Well said sir!

    • Cobrajet

      Already we have “european luxury cars” made in America. So you don’t need to buy crappy US cars to support local jobs.

  • Alfa Giulia QV

    And when or if he imposes tariffs on Chinese made goods, then what? I’m pretty sure US car makers are going to be the ones getting screwed in that regard.

  • U8INIT

    I really don’t care. Do you? ::inserts eye roll::

  • Dennis James

    He will not have the guts, the Americans need European cars. There is a too large quality gap between American and European cars.

    • pcurve

      There are enough European cars made in the U.S though.

  • haudit

    This will have little to no effect on European manufacturers selling their cars in the US, and anyone that thinks otherwise is a fool. European brands available in the US are largely premium brands (Audi, BMW, Mercedes-Benz, Volvo, Jaguar, Land Rover), and part of their core aspirational appeal is that you HAVE TO PAY MORE FOR THEM.

    • Dennis James

      Well, hopefully China will do the same with the iPhones, and increase their core aspirational appeal ! :))

    • pcurve

      20% tariff is going to destroy their 3,5,7 sedan sales. It will be offset by more people buying x series, but I wouldn’t be surprised if sedan sales take a 50% nose dive.

      • haudit

        You mean like how the EU’s 10% tariff on imports from the United States dissuades precisely none of the 150,000 or so Europeans who buy BMW and Mercedes-Benz’s American-made SUVs?

  • FactChecker90803

    The American Tax on Italian Azimuth. Riva or Dominator power boats is only 2.5% but the EU tax on American made Chris Craft. Magnum, Cigarette, Hateras, Delta or Carver is currently 10% plus a Tax on the engine displacement unless the engines are European made Diesel’s plus a Luxury tax.

  • pcurve

    In Germany, 540i xdrive costs with $74500. In the U.S., it’s $60,500… so even with 20% tariff, it would be cheaper in the states. Let’s face it… we’ve gotten away with cheap German cars for too long!

    • Stigasawuswrecks

      How much more do they make in Germany compared to the US?

      • pcurve

        Average household income is quite a bit higher in the U.S. than Germany actually. Americans are pretty rich, even at the top 5% let alone 1%.

  • john1168

    Well this figures… I was hoping to buy an Audi S5 Sportback at the end of the year but now the price is going to skyrocket… UGH!!!

    • rodriguez256

      I’ve been wanting the exact same car however I couldn’t afford it either way.

  • b_digital

    you’re very misinformed and ignorant for making that statement

    • Thule B

      How so? Darnell Robeson is actually 100% accurate. Gotta hit the EU where it hurts. The EU for years has already had 10% tariff on American-made autos and water craft. So, as they say, what’s good for the goos is good for the gander.

  • Matthew Boyd

    Even though European cars cost more, why not increase their prices… that’s a good idea. In actuality it’s punishing the consumer, not the company. China purchases the most European cars out of all countries I’m pretty sure, so these decade old intelligent European auto companies will think of something to work around not selling in the U.S…possibly stop producing as many cars to balance the loss in sales. There are many options.

  • Thule B

    I’m no fan of #45 whatsoever. Can’t stand the man. But, when it comes to balancing trade, Nick099 has a major point here. Already EU leaders are considering carving on the already 10% tariff the EU has on American made cars. So really here, who started this trade war? Being objective, I’d say the EU has been conducting itself in the very same manner for years, prior to the U.S. People really should read a book from time to time and try to understand this tariff threat is NOT going to hurt the U.S. He’s already proven it with the Soy tariff that everyone freaked out about (for about 5 days), until they realized the soy farmers in the U.S. actually did BETTER for it.

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