The European Union has claimed that Donald Trump’s plans to impose higher import taxes on cars to the US would harm his own country’s economy.
Trump’s government is threatening to raise tariffs for EU-made cars to 20% to 'rebalance' the EU's 10% tariff on cars imported into its region. The US's current, long-standing rate stands at 2%.
But in a submission sent to the US Department of Commerce, the EU said that such an increase would be to the detriment of the US’s own interests. It said that car imports from Europe to the US had grown at the same pace as demand from the US market, showing that they were filling a gap that domestic output could not, rather than eating into domestic sales as Trump has suggested.
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