As the stock market reels from the escalation of the President Trump and China trade war, another trade war looks to heat up, as Bloomberg reported on Monday, the “European Union is finalizing a list of American goods to target with retaliatory tariffs in the event that U.S. President Donald Trump imposes levies on car imports.”
EU trade chief Cecilia Malmstrom told Bloomberg, “We are already preparing a list of possible items that would be on that list,” she added, “The moment this is official — if this happens, I still hope it won’t — then we would publish that list,” she said, adding that it would “happen quite rapidly.”
According to Bloomberg “A 25 percent U.S. levy on foreign cars would add 10,000 euros to the sticker price of European vehicles imported into the country, according to the European Commission.”
In July of 2018, “The U.S. and the EU reached a political accord in July to work toward a limited trade agreement, which would put on hold the threat of tariffs on EU cars.”
Speaking of the July deal Malmstrom said, “It’s a little bit unpredictable for the moment,” she continued saying she would hope that President Trump sticks, “to those words,” of the agreement.
More than $1 trillion in worldwide stock value was wiped out on Monday https://t.co/gxLgQ2UUsz pic.twitter.com/lhe4P7QeM5— Bloomberg (@business) May 13, 2019
President Trump’s decision on auto-tariffs is expected to come May 18th.