The EU is poised to offer lower tariffs on US car imports amid threats from Donald Trump that he is ready to ramp up a global trade war. Bernd Lange, chairman of the international trade committee in the European Parliament, told the FT that Europe was willing to cut its 10pc tariff on American cars to closer to the 2.5pc charged by the US on equivalent imports from Brussels. He said: “We can try to have a deal before escalating costs and tariffs”.
He added that the EU would offer to buy more liquefied natural gas (LNG) and defence kit from the US “plus also look to lower tariffs for cars”. It came as the US president said he would announce reciprocal tariffs on many countries next week, adding the additional levies could help shrink America’s budget deficit. He told reporters: “I’ll be announcing that next week - on reciprocal trade - so that we’re treated evenly with other countries. We don’t want any more or any less.”.
He said that tariffs specifically targeting car imports were being considered. “That’s always on the table, it’s a very big deal.”. It followed comments earlier this week in which he hit out at the EU for protecting its car industry. He said: “They don’t take our cars, they don’t take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products.”.
Mr Trump’s move would fulfill a Trump campaign promise to impose tariffs on American imports equal to the rates that trading partners impose on American exports. It was not immediately clear which countries would be affected. The US president made the comments as he met with Japanese prime minister Shigeru Ishiba in Washington. The President has also threatened to hike tariffs on Japanese goods if the US trade deficit with Japan is not equalised.
