Trump Administration Hints At 10% Tariff On European Auto Imports
- The White House has hinted at new tariffs targeting India and the European Union.
- The Trump administration seemed to imply European automotive imports could be hit with a 10% tariff.
- Indian-made motorcycles could be targeted by a 100% tariff to match those applied to U.S. bikes.
After targeting Canada, China, and Mexico, President Trump is now taking aim at the European Union and its automakers. As part of this effort, the White House has released its plan for “Reciprocal Trade and Tariffs” which will target friend and foe alike.
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While the plan is pretty generic, it calls for countering “non-reciprocal trading arrangements with trading partners by determining the equivalent of a reciprocal tariff with respect to each foreign trading partner.” In effect, it aims to target countries that apply tariffs or “unfair, discriminatory, or extraterritorial taxes” on American products and businesses.
More: Trump Now Threatens Canada With Up To 100% Car Tariffs
The plan calls for an investigation and a report before action is taken, but a “fact sheet” put out by the Trump administration hints at possible targets. One of the most eye-catching is a mention that the European Union imposes a 10% tariff on imported cars, but the United States only has a 2.5% tariff. This suggests the White House might target automotive imports from Europe with a 10% tariff.
This would impact a number of automakers, but BMW and Mercedes already have a significant presence in the United States thanks to plants in Spartanburg, South Carolina as well as Tuscaloosa, Alabama. Volkswagen also has a plant in Chattanooga, Tennessee.
Aside from Europe and cars, the White House pointed to India’s 100% tariff on American motorcycles. It stands in stark contrast to the United State’s 2.4% tariff on Indian motorcycles.
The Trump administration also highlighted a 2.5% tariff on ethanol imports that compares to an 18% tariff applied by Brazil. The White House said this resulted in the U.S. importing “over $200 million in ethanol from Brazil, while the U.S. exported only $52 million in ethanol to Brazil.”
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