Trump threatens to impose a 25 percent duty on European cars

Trump threatens to impose a 25 percent duty on European cars

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The US President said that after he managed to reach agreements on trade issues with China, he will be engaged in Europe.

The President of the United States Donald trump repeated his last year’s threats towards the European Union, the meaning of which is that if the EU is not going to trade concessions, the US imposes a 25 percent duty on European cars.

“The European Union is more difficult to deal with, than with anyone else. They used our country for many years,” said trump in an interview with Fox Business News on the sidelines of the world economic forum in Davos. “In the end, it will be very easy, because if we can’t make a deal, we’ll have to set a 25 percent tariff on their cars,” he said.

He added that now his attention will be drawn to Europe after he signed a trade truce with China after several years of trade war, which destabilized the global economy. “I wanted to wait until I’m done with China … I didn’t want to negotiate with China and Europe at the same time”.

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Trump’s comments followed a warning by Secretary of the Treasury Steven Mnuchin that Washington will impose tariffs on cars, if the Europeans impose a digital tax that is mainly designed for American companies.

“If they want arbitrarily to levy taxes on our digital companies, we consider an arbitrary levying of taxes on car companies,” said Mnuchin at a panel discussion at the four-day festival.

Trade relations between the EU and the United States deteriorated soon after trump came to power three years ago. First, the President of the United States imposed tariffs on imported steel and aluminium out of the EU, in Europe responded with duties on iconic U.S. products, including denim jeans and motorcycles.

Then trump has threatened tariffs on European cars, which is of special concern to Germany.

Comments trump has sounded next day after he said he had a positive meeting with the new President of the EU Commission, Ursula von der Leyen on work towards a trade agreement between the US and the EU.

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The U.S. Senate this month voted to approve a new trade agreement linking the US, Canada and Mexico. The United States and China also signed a long-awaited, albeit a partial agreement on easing trade frictions.

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