Trade: Trump threatens european car manufacturers

The american president Donald Trump (C) exits his limousine, the official Paris, July 14, 2017 (Photo by ALAIN JOCARD. AFP)

The american president Donald Trump is mounted a tone in his rhetoric of trade war with the european Union referring to Saturday, a tax on imports of european cars if the EU responded to its decision to impose customs duties on steel and aluminum.

“If the EU still wants to increase taxes and barriers already huge on the american companies who do business there, we will simply taxes on their cars that enter freely in the United States. They make the selling of our cars (and other things) impossible there,” wrote Mr. Trump on Twitter (NYSE:TWTR), denouncing a “huge trade imbalance”.

In the morning, he had denounced the u.s. trade deficit which reached, according to him 800 billion dollars, blaming trade agreements and policies “very stupid” of its predecessors.

The european Union announced Friday to prepare retaliatory measures on companies that are in the manufacturer of motorcycles Harley-Davidson, whiskey bourbon and manufacturer of jeans, Levi’s jeans, after the announcement by Washington of the tax next customs duty of 25% for steel and 10% aluminum, in order to protect the domestic steel industry.

Mr. Trump had later threatened the trading partners of the United States of “taxes reciprocal” on their imports.

Champion of “Made in America”, Mr. Trump has harshly criticized the trade agreements negotiated by his predecessors, accusing them of being responsible for the loss of millions of industrial jobs in the United States. He initiated a renegotiation of the free trade Agreement north american (Nafta), which binds the United States, Canada and Mexico. Any provision of this agreement states that a vehicle assembled by 65% in one of the three countries can be sold on the territory of the united states without import tax.

The us president has already, several times, accused the EU of impeding imports of products manufactured in the United States and threatened to customs duties european manufacturers, in particular Germany and its brands top of the range.

But the German vehicles represent only a small share (7.9 per cent) in the automotive market, nine in the United States, according to the Federation of German automakers. She said that they have produced 1.4 million light vehicles in the area of the Nafta in 2017, the majority (56%) in factories located on the territory of the united states.

Virtually every automotive group overseas selling cars on american soil there has a factory, located in the south-east of the country.

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