Trump's threats on cars: Europe ready to discuss and … fight back



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Brussels – A few days of decisive talks with Donald Trump, the EU is ready to "think outside the box" to put an end to trade tensions with the United States, while preparing to tax new US products offensive case on his cars.
  

The President of the European Commission, Jean-Claude Juncker, will meet the US President in Washington on July 25 with the objective of defusing the trade conflict that is threatening to worsen between Europeans and Americans.

" We are going through a difficult moment when we are talking about world trade.It is about (…) resisting the charm of an unreflected unilateralism ," he acknowledged on Thursday. of a conference in Madrid. " We must continue to seek carefully thought out commercial agreements while respecting our values, our principles ," he nevertheless argued.

After punitive tariffs imposed in June on European steel and aluminum, Donald Trump is now ready to tax US imports of cars produced in the EU.

" We go there with the best intentions ", in the hope of " a de-escalation ," insisted Thursday the European Commissioner for Trade, Cecilia Malmström , who will accompany Jean-Claude Juncker to Washington.

But if the United States executes its threat on automobiles, which " would be a disaster " according to her, the EU has planned to respond.

" We are preparing with the Member States a list of countermeasures and we have made it clear to our American partners ," said the Swedish commissioner. what had been done in the case of steel and aluminum.

The EU had then prepared a list of iconic American products, such as jeans, Harley-Davidson motorcycles and peanut butter, now heavily taxed, to compensate for up to 2.8 billion euros damage to his industry.

According to a European source, the list of countermeasures concerning cars covers a little less than 10 billion euros.

US Secretary of Commerce Wilbur Ross warned on Thursday that mbadive opposition to US car taxes will not prevent the United States from imposing them if they are considered legitimate to protect national security.

A total of 45 individuals, representing national and international companies, industry groups, unions, foreign countries, and Defense Department officials, began to be heard Thursday at the Washington Department of Commerce. the framework of the investigation to determine whether imports are likely to threaten national security, justifying the imposition of additional taxes of some 20% on the sector.

The overwhelming majority expresses its opposition to such tariffs, highlighting the potential job losses in the United States.

" This is not a plebiscite ", however, reacted Wilbur Ross on the US channel CNBC.

Jean-Claude Juncker travels to Washington without a mandate to negotiate on behalf of the member states, but with the intention of " going off the beaten track " to " find a solution "with the Americans," said Cécilia Malmström.

– " Increasingly aggressive rhetoric " –

The EU attaches great importance to the reform of the World Trade Organization (WTO), an institution regularly challenged by United States.

In the automotive sector, the idea of ​​a plurilateral agreement bringing together the main producing countries to reduce tariff barriers, a time defended by Germany, was also mentioned.

Another possibility: to include the automotive sector in a minimum trade agreement with the United States on industrial goods.

The EU currently imposes 10% tariffs on vehicles imported from the United States, including those manufactured by European manufacturers, while the United States taxes imports of cars at 25% and 25%. % those of vans and pick-ups.

Donald Trump's threat to automobiles is of particular concern to Germany, where this key sector employs 800,000 people.

" We have seen in the past that these meetings were unpredictable ," acknowledged Thursday Ms. Malmström, lambasting the " increasingly aggressive rhetoric " of Americans, who " undermines decades of foreign policy ".

Whether NATO, the Iranian nuclear deal or global warming, there are many points of friction with the US president, who recently said that the EU was a " enemy "of the United States at the commercial level.

In addition to trade, Jean-Claude Juncker and Donald Trump must also talk about foreign policy, the fight against terrorism and energy.

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