Trump to EU: Expect Auto Tariffs Without Trade Deal

Earlier this week, the European Union warned that if the United States imposes any new tariffs on European-built vehicles, it can expect similar levies on American products. However, armed with the Commerce Department’s confidential report on automotive imports, President Donald Trump doesn’t appear remotely interested in backing down.

While Trump previously agreed not to impose additional duties on European cars, the arrangement hinged upon the two coming together on trade. Unfortunately, while both sides seem eager to work out a deal, they can’t quite manage to keep the constant threats down to a dull roar.

Speaking to reporters at a White House meeting with Austrian Chancellor Sebastian Kurz, the U.S. president maintained that automotive tariffs are still something his administration plans to use as a bargaining chip. “We’re trying to make a deal. They’re very tough to make a deal with — the EU,” Trump reportedly told Reuters. “If we don’t make the deal, we’ll do the tariffs.”

Many have suggested this was always the president’s plan, with frequent claims he was only waiting for the Commerce Department’s report to move forward. While the contents of those documents are unknown to the public, it was widely assumed the department would designate foreign imports as a national security threat on economic grounds.

European Commission President Jean-Claude Juncker, who is among the few individuals who can boast of kissing an acting U.S. president inside the Oval Office, expressed concerns over Trump’s protectionist trade policies this week. But he also reiterated to the media that there remains a verbal agreement in place to explore a new trade deal before any formal decisions are made regarding tariffs.

Trump didn’t speak to whether or not the confidential report advocated for tariffs, but his position on the matter doesn’t appear to have softened since reading it. “We’ve studied it very carefully. We’ve seen the results. But the bottom-line result is whether or not we can make a deal with the EU that’s fair,” he said.

[Image: The White House]