The European Union, which has never been a fair trader with the US, is rushing to cut taxes on American cars to appease Trump, who is about to tariff them into worse shape than they are already in.
Brussels is preparing to lower tariffs of 10 percent on US cars shipped into the bloc to appease President Trump, a senior EU lawmaker said on Friday, Telegraph UK reports.
Bernd Lange, who sits on the European Parliament’s trade committee, said officials were considering bringing tariffs closer to the 2.5 percent levied on European cars imported into the US.
I think he will have to do better than 10 percent, but they have to obey Brussels.
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Mr. Lange told the Financial Times: “We can try to have a deal before escalating costs and tariffs. We have bound tariffs for cars at the WTO [World Trade Organization] at 10 percent, but let’s say, to show the world we have fair relations, it might be possible to reduce them.”
It came as President Trump vowed an escalation of tariffs next week to address an imbalance in trade between the US and the world.
President Trump warned that tariffs are coming.
“I’ll be announcing that next week – on reciprocal trade – so that we’re treated evenly with other countries. We don’t want any more or any less.”
Tariffs targeting car imports are being considered. The President said: “That’s always on the table, it’s a very big deal.”
The EU exported cars worth €37.4bn to the US in 2022 but imported just €8.7bn worth of cars from the US.
Tariffs will hurt them more than us.
On Friday night, President Trump suggested he won’t hit the world with blanket tariffs and will only match levies on US imports.
China
On Friday, President Donald Trump reinstated a tariff loophole for small-value packages from China (under $800), which was eliminated as part of the sweeping tariffs on Chinese imports that went into effect after midnight on Tuesday. He said he would announce a new “reciprocal tariffs” slate next week.
The United States Postal Service said it will “continue accepting all international inbound mail and packages from China and Hong Kong Posts,” reversing its decision to suspend inbound packages from China and Hong Kong on Tuesday night.
The postal service noted that it is working closely with U.S. Customs and Border Patrol to “implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”
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