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.
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