US President Donald Trump says he will increase tariffs on cars and trucks imported from the European Union (EU) to 25 percent.
Announcing his decision in a Truth Social post on Friday,
Trump accused the EU of “not complying with our fully agreed to trade deal”.
Trump said the tariffs would take effect next week without
specifying an exact day.
“I am pleased to announce that, based on the fact the
European Union is not complying with our full agreed to Trade Deal, next week I
will be increasing Tariffs charged to the European Union for Cars and Trucks
coming into the United States,” he wrote.
“The tariff will be increased to 25%. It is fully understood
and agreed that, if they produce cars and trucks in USA plants, there will be
no tariff.
“Many automobile and truck plants are currently under
construction with 100 Billion Dollars being invested, A RECORD in the History
of Car and Truck Manufacturing. These Plants, staffed with American workers,
will be opening soon.
“There has never been anything like what is happening in
America today.”
The automotive manufacturing sector accounts for a
significant share of Europe’s economy, both in output and employment, providing
13 million jobs and contributing 7% of the EU’s GDP.
In 2023, European car manufacturers exported €56 billion
worth of vehicles and components to the United States, accounting for 20
percent of the EU’s total automotive export value.
With the US being the number one export destination for
EU-made cars, Trump’s tariff threats leave the bloc highly vulnerable, as the
taxes would raise the cost of European cars in the US market, making them
significantly less price-competitive against American and non-EU alternatives.
A similar 25 per cent tariff was imposed by the Trump
administration last year on global automotive imports under a national security
trade law, but the US reached a separate deal with the EU to lower those duties
to a net 15 per cent, including prior duties.
In exchange, the EU agreed to eliminate duties on US
industrial goods, including autos, and accept US safety and emissions standards
for vehicles. Those tariffs were part of a broader deal which saw the EU accept
a nearly across-the-board 15 percent US
tariff rate and agree to zero out most of its own duties on US goods.
The deal was unpopular in Europe, but EU leaders argued it
would insulate firms against further hikes.
However, implementation has been slow.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com