Economy, Auto
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EU to Respond to Any US Auto Tariff Move

EU to Respond to Any US Auto Tariff MoveEU to Respond to Any US Auto Tariff Move

The European Union will respond to any US move to raise tariffs on cars made in the bloc, a senior European Commission official said, the latest comments in an escalating trade row.

US President Donald Trump on Friday threatened to impose a 20% tariff on all imports of EU-assembled cars, a month after his administration launched an investigation into whether auto imports posed a national security threat, Reuters reported.

“If they decide to raise their import tariffs, we’ll have no choice, again, but to react,” EU Commission Vice President Jyrki Katainen told French newspaper Le Monde.

“We don’t want to fight [over trade] in public via Twitter. We should end the escalation,” he said in the comments published on Saturday.

The European Autos Stocks Index fell on Friday after Trump’s tariff threat. Shares of US carmakers Ford Motor Co and General Motors Co also dropped.

“If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the US. Build them here!” Trump tweeted.

The US Commerce Department has a deadline of February 2019 to investigate whether imports of automobiles and auto parts pose a risk to US national security.

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