Trump to EU: Expect Auto Tariffs Without Trade Deal

Matt Posky
by Matt Posky

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]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Hpycamper Hpycamper on Feb 21, 2019

    Trade problems do need to be straightened out and tariffs might help accomplish that. Just wish it wasn't such a political circus.

  • James Charles James Charles on Feb 22, 2019

    Highest rating, I do respect your rights in politics and religion, but I don't agree with your approach. Trump IS disruptive as opposed to productive. Yes, Trump has many worried, but for ALL the wrong reasons. Don't confuse this with successful collaboration. Trump destroys viable business and political ties. This can't be good in the longer term for the US.

    • See 1 previous
    • Highdesertcat Highdesertcat on Feb 22, 2019

      @James Charles Turn off your autocorrect in Settings if it gives you trouble. I did, on both my iPad Air and my Windows Browsers (Firefox, Opera, and Chrome) A President and Administration are judged by how effective they are for individual Americans, and America as a nation. Trump has done better than anyone since Reagan. I didn't vote for Trump but I'm sure glad he got elected because of what his policies have done for me and mine, and America as a nation. If Trump decides to run again, and I hope he does even though he doesn't need this job, I will vote for him. I'm an Independent, so I am guilty of voting for the most qualified candidate just about every time, regardless of political party. All the anti-Trumpers and ne'er-Trumpers better hope he doesn't get re-elected because based on his first term so far, Trump will rebuild, redesign, redecorate, and refurbish the world and all its relationships with America in his own lasting image. Just look at the Courts and Supreme Court appointments. Talk about right-winger dreams. This is even better than dreaming. It is done! The right is rejoicing in that God was on their side when Trump got elected in 2016. I'm just happy that the stockmarket passed 26K again which means we should get a forced payout on the annuity in a couple of weeks. As in Buy Low, Sell High. I give credit where credit is due, regardless of political party. Trump's policies have helped millions of Americans.

  • Master Baiter "That said, the Inflation Reduction Act apparently does run afoul of WTO rules..."Pfft. The Biden administration doesn't care about rules. The Supreme Court said they couldn't forgive student load debt; they did it anyway. Decorum and tradition says you don't prosecute former presidents; they are doing it anyway. They made the CDC suspend evictions though they had no constitutional authority to do so.
  • 1995 SC Good. To misquote Sheryl Crow "If it makes them unhappy, it can't be that bad"
  • 1995 SC The letters on the hatch aren't big enough. hard pass
  • Ajla Those letters look like they are from AutoZone.
  • Analoggrotto Kia EV9 was voted the best vehicle in the world and this is the best TOYOTA can do? Nice try, next.
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