The shift drew sharp rebukes from European politicians and trade groups, with one European economist calling on Brussels and the German government to “finally display some backbone” and impose retaliatory tariffs.
“Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States,” Trump wrote in a social media post.
“It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF.”
Trump informed reporters the higher tariff would force European car buildrs to shift production to the U.S. more quickly.
“We have a trade deal with the European Union. They were not adhering to it. So I raised the tariffs on cars and trucks to 25%, that’s billions of dollars coming into the United States, and it forces them to shift their factory production much rapider,” he stated at the White Hoapply.
The European Commission swiftly rejected Trump’s claim that Brussels was not complying with last summer’s trade deal and stated it would keep its options open to protect EU interests if Washington breached the terms of the agreement.
Reuters
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