Trump threatens Europe, the EU with auto tariffs in the big trade war movement

President Donald Trump threatened Wednesday to intensify trade conflict with the European Union unless the group's leaders accept significant concessions.

At a cabinet meeting, Trump insisted that European Commission President Jean Claude Juncker must make a major commercial offer to lower the barriers on automobiles during his trip to the states -United. Otherwise, said Trump, the United States will be forced to hit the EU with trade restrictions.

"We said that if we do not negotiate something right, we have a huge retribution that we do not want to use but we have tremendous powers," Trump said. "Including cars, cars is great, and you know what we're talking about when it comes to cars and tariffs on cars."

The US Department of Commerce is investigating auto imports, and Trump has already threatened heavy taxes on imported cars. Such a move would represent a massive escalation of Trump's tariffs on the EU and likely push both parties into a full trade war.

Tariff deadline approaches

While Trump criticizes auto imports throughout its presidency, the president announced in May that the United States would open an investigation under the United States. Section 232 of the Trade Expansion Act. This end result could be more tariffs – and probably economic turmoil.

Trump directly threatened to impose a 20% tariff on EU auto imports into the United States.

"On the basis of tariff and trade barriers long placed on the United States and its large companies and workers by the European Union, if these tariffs and barriers are not soon eliminated and removed, we will impose a 20% fare on all of their upcoming cars in the US, "tweeted Trump." Build them here! "

Many European automakers, including brands like BMW and Mercedes, are already producing cars in factories in the United States

Any tariff on vehicles would constitute a massive escalation of the trade struggle between the EU and the US In 2017, the United States imported a little more than $ 43 billion worth of vehicles for the transportation of people alone.All measures on automobiles would eclipse those on steel and aluminum, which account for just over $ 7 billion worth of exports. e EU to the United States.

A hearing on the possibility of auto rates is scheduled for Thursday, with dozens of speakers from across the industry weighing in. After the hearing, the Commerce Department could issue a recommendation on rates in the weeks.

"A massive tax on consumers"

While Trump seems ready for a high-profile show, automakers around the world begged the president to de-escalate the dispute in a letter released on Wednesday.

Seven auto industry trade groups representing major automakers such as Ford, GM and Toyota, as well as dealers and parts manufacturers, said tariffs on imports of automotive goods would hurt the US economy and to US consumers.

"Increasing rates on automobiles and auto parts would be a massive tax for consumers who buy or service their vehicles – whether they are imported or manufactured in the country" , says the letter. "These higher costs will inevitably lead to lower sales and the loss of US jobs, as well as increased costs of vehicle maintenance and repair, which could delay the critical maintenance of vehicles. "

Almost all major automakers, from foreign BMW and Hyundai companies to US brands like GM and Ford, have submitted comments to the Commerce Department warning against the possible impact of tariffs on auto workers and manufacturers. US consumers.

Legislators Push Back

Congressmen also rejected the president's plans.

direction. Doug Jones, a Democrat from Alabama, and Lamar Alexander, a Republican from Tennessee, said Wednesday that they were working on a bill that would at least delay car rates for a while. Both senators represent states with large automobile manufacturing bases.

"Nothing has done more in the last 40 years to increase family incomes in Tennessee than the arrival of the auto industry, and nothing could do more to damage those incomes. that tariffs on imported automobiles and auto parts, tariffs on imported steel and aluminum that the administration has already imposed, "said Alexander during a speech to the Senate.

According to Politico, the bill would put an end to the Department of Commerce's investigation of automobiles until the International Trade Commission conducts its own study. Senators say the measure would give Trump time to change his mind.

"I realize that people affected by these proposed tariffs are looking for a quick fix to stop them from going their way," Jones told Politico. "At this moment, the only miracle solution in this case is that the president changes his mind."

The bill also comes at a time when more and more Republican lawmakers are threatening to regain control of the president's trade policy. GOP Sens. Bob Corker and Pat Toomey have drafted a bill that would give Congress the approval of all national security tariffs.

Republican Senate Finance Committee Chairman Orrin Hatch also warned Trump in a speech on Tuesday that legislation may be needed unless the president changes course.

"If the administration continues to move forward with its erroneous and reckless confidence in tariffs, I will work to advance commercial legislation to reduce the presidential trade authority," Hatch said.

Meanwhile, in the House of Representatives, a group of 149 bipartisan legislators sent a letter to the Secretary of Commerce, Wilbur Ross, asking him not to apply tariffs.