In response to the EU’s retaliatory tariff on US goods, President Trump has reacted with another tariff threat, this time targeting imported vehicles with a 20% fee.
Donald Trump remarked on Twitter that if the EU “Tariffs and Barriers are not soon broken down and removed”, then the US will have no choice but to act.
The President’s announcement sent a shockwave through the markets, with shares of BMW, Volkswagen, Fiat, and Mercedes all lower. Ford and GM shares also fell.
However, the tariff is actually lower than the original 25% levy Trump had previously suggested.
These new tariffs form part of a broader strategy adopted by the White House in which it has deemed duties on U.S. exports to be a threat to “national security”.