US threatens tit-for-tat trade war with EU
DONALD Trump has threatened to impose new tariffs on European cars as anxieties escalate over a possible trade war the US President has said would be a good thing.
Two days after announcing a 25 per cent levy on steel imports and 10 per cent tax on aluminium, Mr Trump responded to threats of retaliation from various countries by saying he would step up any tit-for-tat measures.
“If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a tax on their cars, which freely pour into the US,” he tweeted. “They make it impossible for our cars (and more) to sell there.”
The EU had warned on Friday it was considering imposing its own tariffs on a range of US products ranging from Levi’s jeans to bourbon and Harley-Davidson motorcycles.
Mr Trump’s tariffs plan has drawn condemnation across the globe, with several countries threatening retaliation if he imposes the duties.
Canada was one of several countries to promise it would enact similar measures, while China called for restraint.
Swedish appliance manufacturer Electrolux announced it was delaying a $US250 million ($A322 million) investment to expand and modernise a plant in Springfield, Tennessee while it awaited further details of Mr Trump’s plans.