Trump has threatened a 25% tariff on German cars. That threat was made isolation. They respond by offering no tariffs if Trump will do the same for the U.S. If Trump doesn't accept then it makes his claim to want a tariff-free world to be a fraud. If he does accept it then he probably loses Michigan. The Europeans are trying to put him over a barrel.
“Trump has threatened a 25% tariff on German cars. That threat was made isolation. They respond by offering no tariffs if Trump will do the same for the U.S. If Trump doesn’t accept then it makes his claim to want a tariff-free world to be a fraud. “
Did Trump ever state a scope limited to autos? That threat was not in isolation. It’s within the context of an adverse balance.
If the EU removes ALL tariffs on ALL US goods, I’m sure the US will do the same for them.
In fact I’m certain Trump will sign up for innumerable bilateral agreements which have zero tariffs/encumbrances on both sides.
Trump will withdraw threat of 25% tariff on German autos only as part of a complete reworking of US-EU trade imbalances.
Auto exports from US to EU are not that big of a deal for us. Auto exports from EU to US are everything for Europe (i.e. Germany). No way he trades his ace straight up for the EU’s puny duece.