Trump’s trade war threatens EU car makers

The historic good trade relations between the two major Western blocs, the United States and the European Union, have not been spared in the trade war declared by US President Donald Trump. Just as the effects of the 2008 crisis seemed to be stabilizing here, the European Union is having to navigate further uncertainty, this time caused by the White House. The imposition of tariffs on European imports of steel and aluminium, almost a year ago, might only be the first of many headaches that Trump can cause in Europe, regarding trade. It would appear that cars, an even more important sector for European businesses, are coming to the front line of the economic battle America’s controversial leader is convinced he must declare. At the same time therefore, Brussels has gone from negotiating an ambitious but controversial trade liberalization agreement with the United States, the Transatlantic Trade and Investment Partnership (TTIP), to fighting to ensure its hard-won previous tariff agreements aren’t reneged upon. For a number of weeks now, a draft report by the US Department of Commerce in Washington has been causing concern, as it mentions establishing new tariffs to protect the US automobile industry as a matter of “national security”. The worst may be yet to come.