Trump Threatens With A 20 Percent Import Tax

Trump Threatens with a 20 percent Import Tax on all European Cars. The American president Donald Trump has promised European car manufacturers a huge import duty via Twitter.

Trump states the trade limitations and tariffs that apply in Europe to American goods. If they would not lift quickly, charges of 20 percent can follow, he writes with Right News.

According to the president, the charge affects all cars that come to the US from Europe. ” Build them here ”, he adds.

Escalation
The possible US Tax on European cars has speculated for some time. If executed after the previous taxes of 25 percent on steel and 10 percent aluminium, an escalation of the European-American trade dispute can be said.

Previously, Trump even spoke about the possibility of a tax on cars of also 25 percent. That is also the amount of the charge that he wants to carry out on Chinese vehicles.

At the Frankfurt stock exchange, the shares of car manufacturers such as BMW, Daimler and Volkswagen fell to 2 percent after the news. These companies export a lot to the US, but also have factories where they can produce locally.

Passenger cars
On European passenger cars exported to the USA, 2.5 percent import tax is currently levy. A rate of 25 percent already applies to trucks.

Conversely, the European Union charges an import duty of 10 percent on US vehicles.

The US Department of Commerce is currently reviewing whether imports of foreign cars and parts pose a threat to national security. This study should be completed by the end of July or in August.

Countermeasures
The Trump threat comes on the day that EU countermeasures in response to American taxes on European steel and aluminium have entered into force. On American steel and products such as denim jeans, Harley-Davidson engines and peanut butter extra charges apply.

It concerns export goods from the US worth 3.26 billion dollars.

Losers
The Trump threat is a ‘worrying signal’, says VNO-NCW leader Hans de Boer, who fears that the levies will also hit the many Dutch suppliers to the automotive sector.

“This type of action only has losers,” says De Boer. “Consumers, companies and countries are all getting worse off in the end.”