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Trump Threatens To Apply Tax On Imports Of Cars From European Union

NEWS WORLD INDIA | 0
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| March 4 , 2018 , 18:19 IST

US President Donald Trump has stepped up his trade war, threatening to apply a tax on imports of cars from the European Union.

Trump said other countries had taken advantage of the US for years because of its "very stupid" trade deals. “We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!”

The trade dispute began on Thursday when US President Donald Trump announced, to impose tariffs on steel and aluminium imports, declaring 25 percent tariff on steel and 10 percent on aluminium.

Also ReadDonald Trump’s Import Restrictions To Affect US Economy Too: IMF

In a tweet, Trump cited that there is a "big imbalance" between the US and the EU.

"If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a tax on their cars which freely pour into the U.S," he wrote.

This could spell trouble for two of the most popular European brands sold in the US viz Volkswagen and BMW.

The German luxury car maker also manufactures many of its cars in America, shipping billions of dollars abroad. In 2016, the EU shipped more than 6 million cars abroad and the US.

Trump tweeted on Friday that the US was losing billions of dollars and would find a trade war easy to win. He said, "When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!”

US President had already announced tariffs on solar panels and washing machines in January.