Washington: The European Union should immediately remove tariffs imposed on the United States as well as barriers in its trade, else 20% tariffs will be slapped on the cars imported from Europe to the United States, warns US President, Donald Trump. He further added that the EU should consider manufacturing cars in the United States to exempt from these tariffs. The warning issued by the US President indicates a new spark to flare up a trade war between the United States and Europe.
In the beginning of March, US President Trump declared US of starting a trade war openly. While announcing the same, he had decided to place tariffs on cheap steel and aluminium imported into the United States. Trump, who ordered immediate implementation against China, had signalled talks with Europe and its other allies. However, tariffs were implemented on cheap steel and aluminium imported from the EU since June, as these talks reached no resolution.
The European Union had adopted a tough stance against imposition of tariffs. Two days ago, the European Union had declared placing 25% tax on the US imports worth $ 3.3 billion, which includes American bikes, metal, jeans and alcoholic drinks. Furious over EU’s decision of slapping tariffs, President Trump gave a new threat to the European countries.
“Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, 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 U.S. Build them here!,” warned Trump, prompt reaction to which has been emerged from the EU.
Based on the Tariffs and Trade Barriers long placed on the U.S. & its great companies and workers by the European Union, 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 U.S. Build them here!
— Donald J. Trump (@realDonaldTrump) June 23, 2018
European Commission has prepared an action plan against the United States, which warns of imposing tit-for-tat duties on it. Trump’s threat followed with Europe’s response clearly indicates a new trigger for trade war between the United States and Europe.
Escalating the trade war, the United States had declared imposing nearly $50 billion tariffs against China, last week. Retaliating to which, China too had put tariffs on US exports worth $34 billion and above. Threatening to respond to China’s imposition of tariffs, President Trump had slapped tariffs on around $200 billion imports from China.