The European Union (EU) is readying its retaliation plan, in case U.S. President Donald Trump does not budge from his tariff threats for cars.
Last month, Donald Trump threatened to raise tariffs to 20% from 2.5% on cars imported from the EU into the U.S., if an ongoing investigation convinces him that auto imports are indeed endangering U.S. national security. On Thursday, EU trade chief Cecilia Malmstrom announced that the region is preparing a list of “rebalancing measures” to be implemented if Donald Trump decides to go ahead with the tariff hike.
Hoping to temper the trade tensions, European Commission President Jean-Claude Juncker will meet Trump on July 25 to propose a lowering of levies on automobiles and auto-parts among all major car exporters (akin to a plurilateral agreement), along with an expected free-trade offer.
Following U.S. tariffs on aluminum and steel imports and the EU’s hitting back with levies on $3.3 billion of American goods, the next round of the trade battle might be around the corner - unless the Juncker -Trump meeting manages to move the needle.