(From The Guardian)
Donald Trump will put a “tax on the American people” if he goes ahead with a threat to hit European carmakers with punitive tariffs, the European Union has warned.
In a hard-hitting paper, the European commission said Trump’s tariffs would be “self-defeating and would weaken the US economy”, estimating that almost $300bn (£228bn) worth of US goods could be hit by countermeasures.
The warning comes in the commission’s first detailed response to the US department of commerce following Trump’s threat to hit imports of European cars with tariffs.
“The European Union is possibly as bad as China, only smaller,” the US president told Fox News on Sunday. “They send a Mercedes in, we can’t send our cars in,” he claimed.
The EU imposes a 10% tariff on US-built cars, while the US levies a 2.5% tariff on cars assembled in Europe and a 25% tariff on European-built vans and pick-up trucks.