With Trump’s meeting with Jean-Claud Juncker set to begin any minute where the discussion of potential tariffs on European cars will be among the most heated topics, WaPo reports that “several” of President Trump’s senior economic advisers believe he plans to impose a 25 percent tariff on close to $200 billion in foreign-made automobiles later this year, three people briefed on discussions said, according to zerohedge.com
Trump has said imposing tariffs on foreign cars could push Americans to buy more U.S. automobiles, helping U.S. workers. But critics believe tariffs would drive up the cost of all cars and pass those inflated prices on to consumers.Putting the $200BN number in context, the US imported a record $192BN in new passenger vehicles in 2017, in other words Trump plans to tax all foreign auto imports.
Of course, it is common knowledge by now that the E.U. charges a 10% tariff on imports of U.S. automobiles, while the US has a far lower 2.5% tariff on European cars, however it charges a 25% tariff on light truck and sport-utility vehicle imports from other countries. As the WaPo explains Trump wants to move forward despite numerous warnings from GOP leaders and business executives who have argued that such a move could damage the economy and lead to political mutiny, according to zerohedge.com