(Photo: AFP)
US President Donald Trump said on Tuesday the government was completing a study about increasing import tariffs on cars from the European Union and suggested he would take action soon.
“We are finishing our study of Tariffs on cars from the EU in that they have long taken advantage of the US in the form of Trade Barriers and Tariffs. In the end it will all even out-and it won’t take very long!” Trump tweeted.
On Friday Trump threatened to impose a 20-percent tariff on all imports of EU-assembled cars, a month after his administration launched an investigation into whether auto imports posed a national security threat.
Meanwhile, the EU imposed a range of tariffs on goods worth 2.8 billion euros (3.3 billion US dollars) in a tit-for-tat response to Trump's decision to apply stiff tariffs on European steel and aluminum exports.
In response Trump threatened on Twitter to slap a 20-percent tariff on European car imports, heightening worries of a trade war which could dent growth on both sides of the Atlantic. "If the US hits us again with a 20-percent tariff on automobiles, we will respond again," French Finance Minister Bruno Le Maire said Monday.
The US Commerce Department has a deadline of February 2019 to investigate whether imports of automobiles and auto parts pose a risk to US national security.
US Commerce Secretary Wilbur Ross said last Thursday the department aimed to wrap up the probe by late July or August.
Trump has repeatedly singled out German auto imports to the United States for criticism.
Trump told carmakers at a meeting in the White House on May 11 that he was planning to impose tariffs of 20 percent or 25 percent on some imported vehicles and sharply criticized Germany’s automotive trade surplus with the United States.
The United States currently imposes a 2.5-percent tariff on imported passenger cars from the EU and a 25-percent tariff on imported pickup trucks. The EU imposes a 10-percent tariff on imported US cars.