President Donald Trump threatened to impose a 20 percent tariff on all European Union-assembled light vehicles coming into the U.S., a month after the administration launched an investigation into whether auto imports pose a national security threat.
This story by David Shepardson appeared in Automotive News.
“If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20 percent Tariff on all of their cars coming into the U.S. Build them here!” Trump wrote on Twitter Friday.
How such a threat would be executed without violating World Trade Organization rules is unclear and it comes after the administration has already opened an investigation into whether to impose a 25 percent global tariff on all imports of autos and auto parts on the premise that they pose a national security threat.
“While we understand that the Administration is working to achieve a level playing field, tariffs are not the right approach,” the Alliance of Automobile Manufacturers said in a statement. “Tariffs raise vehicle prices for our customers, limit consumer choice and invite retaliatory action by our trading partners. Automakers support reducing trade barriers across the board and achieving fairness through facilitating rather than inhibiting trade.”
The U.S. Commerce Department aims to wrap up its investigation into whether imports of automobiles and auto parts pose a risk to national security by late July or August, Commerce Secretary Wilbur Ross said Thursday. The Commerce Department plans to hold two days of public comments in July on its probe of auto imports.
The European Autos Stocks Index fell sharply after Trump’s 20 percent tariff tweet and was last down 1.25 percent. Shares in General Motors and Fiat Chrysler Automobiles rose slightly while Ford was down 3 cents as of 1:39 pm EDT.
