The EU prepares its 35B List of Tariffs if the US Imposes Car Tariffs

The European Union will retaliate with extra duties on 35 billion euros ($39.1 billion) worth of U.S. goods if Washington imposes punitive tariffs on EU cars, the bloc’s trade chief said on Tuesday.

“We will not accept any managed trade, quotas or voluntary export restraints and, if there were to be tariffs, we would have a rebalancing list,” European Trade Commissioner Cecilia Malmstrom told a committee of the European Parliament.



“It is already basically prepared, worth 35 billion euros. I do hope we do not have to use that one,” she continued.

U.S. President Donald Trump declared in May that some imported vehicles and parts pose a national security threat. But he delayed for six months a decision on whether to impose tariffs to allow time for trade talks with the EU and Japan. That six months ends in mid-November.

“We welcome the decision by the U.S. not to impose duties on cars and car parts, but of course the very notion that European cars can be a national security threat to the U.S. is absurd,” Malmstrom said.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza