President Donald Trump on Saturday threatened the European Union, stating that there would be increased taxes on car imports. He also slammed the deals and policies that were struck with the E.U. by his predecessors, calling them “very stupid”. His administration continues to stand by him in his decision this week to impose unilateral tariffs on steel and aluminum imports.
The President took to Twitter where he said the United States has a yearly trade deficit of $800 Billion Dollars because of the country’s “very stupid” trade deals and policies. He continued to write that the wealth and jobs belonging to the US are being given to other states which have, for many years, been taking advantage of them. He said that those countries ridicule the leaders of the United States and that it will come to an end.
Trump continued to tweet that if the European Union wants to further the already huge tariffs and barriers being imposed on US companies that are doing business there, the US will simply apply taxes on their cars which are constantly being brought into the country. He clearly stated that the E.U. is making it impossible for US cars and others to sell in their country which has set off a big trade imbalance.
The Census Bureau data shows that the US total trade deficit in goods and services was slightly above $556 billion in 2017. When based solely on goods, the deficit amounted over $810 billion in the same year.
Trump on Thursday announced intentions to levy a 10% tax on aluminum imports and a 25% tax on steel imports. These plans would protect the United States national security interests. The President’s decision led to a drop in stock markets and received criticism from many Republican lawmakers. Opposition to this proposal has also been seen from many other countries including some US allies like Canada.
The E.U. responded to the President’s threats saying that it will consider imposing retaliatory tariffs on politically sensitive products from Republican-run states. These products include alcohol, clothing, and motorcycles.
Despite his threats, the US President cannot impose new tariffs on the E.U unless he goes through the formal process required, as the administration did with the aluminum and steel tariffs. While still a presidential candidate, Trump broke with decades of the Republican convention on trade when he criticized deals like the North American Free Trade Agreement as unfair to the US.
