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20 FEBRUARY 2019 AL CIRCLE

EU vows to retaliate if US auto tariffs come into effect: says European Commission

EDITED BY : DEBANJALI SENGUPTA 1MINS READ

Soon after the US Commerce Department filed a report on Monday, February 18, empowering President Donald Trump to impose imported car tariffs within the next 90 days, the European Union responded and vowed to retaliate, reported a European Commission spokesman Margaritis Schinas.

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He specifically told a news briefing in Brussels "Were this report translated into action detrimental to European exports, the European Commission would react in a swift and adequate manner."

German Chancellor Angela Merkel labelled as “frightening” the prospect that this report could label European car imports as a national security threat to the US, enabling the tariffs.

The Trump administration had threatened to impose 25 per cent duties on European cars, especially targeting Germany, because he feels that the latter has harmed the US auto industry.

According to the VDA manufacturers’ federation, German automobile groups last year had exported 470,000 cars from Germany to the US.

European officials said on Monday that a list of €20 billion ($22.6 billion) of potential countermeasures is ready, but did not provide any further details.

On Thursday, February 21, EU trade ministers will further discuss on possible countermeasures against the US, at a talk in Bucharest.


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EDITED BY : DEBANJALI SENGUPTA 1MINS READ

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