EU Vows 'Swift' Riposte to Threatened U.S. Auto Tariffs


The EU promised a quick and effective response if the United States imposes import duties on European autos, a spokesman for the European Commission said on Monday.

Brussels issued the threat after the U.S. Commerce Department filed a report on Monday that empowered President Donald Trump to apply car duties within the next 90 days.

German Chancellor Angela Merkel has labeled as "frightening" the prospect that this report could label European car imports as a national security threat to the United States, enabling the tariffs.

The White House has already used the national security argument -- saying that undermining the American manufacturing base impairs military readiness, among other claims -- to impose steep tariffs on steel and aluminum imports. 

"Were this report translated into action detrimental to European exports, the European Commission would react in a swift and adequate manner," EU spokesman Margaritis Schinas told a news briefing in Brussels.

The protectionist Trump has threatened 25 percent duties on European autos, especially targeting Germany, which he says has harmed the American car industry.

In 2017 just under half of the 17 million cars sold in the U.S. were imported, most of them produced in Canada and Mexico which are expected to be exempt from any new automobile duties.

German automobile groups last year exported 470,000 cars from Germany to the United States, according to the VDA manufacturers' federation.

The transatlantic flare-up followed a truce established in July, in which Trump and European Commission President Jean-Claude Juncker pledged no new tariffs while both sides pursued a limited trade deal.

Juncker "trusts President Trump's word. The European Union will stick to its word as long as the U.S. does the same," Schinas said.

Aside from economic matters, U.S.-European ties have already been upended over Trump's approach towards Iran and Syria, as well as other issues.

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