FLASH: The EU is next, as The Trump Administration prepares tariffs on Germany’s auto industry, a 25% tariff already is in place on light trucks
President Trump said trade negotiations with China were progressing and a final agreement “will probably happen,” adding that his call for tariffs to remain on Chinese imported goods for some time did not mean talks were in trouble.
President Trump, in a TV interview Friday, also said he expected to keep a 25% tariff on European light trucks during separate ongoing trade talks with the European Union, but that companies could avoid it by building factories in the United States.
The Trump Administration is engaged in ongoing trade talks with both the European Union and China as part of the President’s “America First” policy.
Top US officials are headed to Beijing now, and a Summit possible between Presidents Trump and Xi Jinping to seal any final deal.
“The European Union … frankly, treats us as badly as China,” President Trump said in the interview.
“Our deal is coming along very well. We’ll see what happens,” President Trump said regarding China. “I think the deal will probably happen. I think they need it very badly.”
Asked about his remarks earlier this week about US tariffs on Chinese goods staying in place for a period of time and whether that meant there was a snag in the negotiations, President Trump said, “No, not at all.”
President Trump then moved to the European auto sector, including trucks.
“We get a 25% tariff on that segment – that’s our best segment by far. And yes, we will absolutely be able to keep it – not only keep it going, I really think we have tremendous potential,” he said in the interview.
“I’ll tell you what the end game is. They will build their plants in the United States and they have no tariffs,” President Trump added.
When asked if he would agree to Zero tariffs, he said: “I would do it for certain products, but I would not do it for cars.”
The United States in July agreed not to hit EU car imports with extra tariffs while the Washington and Brussels sought to improve economic ties, but the US Ambassador to the EU said Europe was falling short in trade talks.
The US Commerce Department has given the White House a report regarding the legal basis to impose steep tariffs on cars on national security grounds.
“What poses a national security risk is our balance sheet. We have to have — we need a strong balance sheet. Otherwise you do not have national security,” President Trump added. “We are straightening it out.”
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