EU Trade Commissioner Gives Ground: We’re Willing To Drop Auto Tariffs To Zero

Hot Air ^ | 30 Aug 2018 | John Sexton

[mandaladon]

EU Trade Commissioner Gives Ground: We’re Willing To Drop Auto Tariffs To Zero (If The US Will Do The Same)(Full Title)

President Trump’s hard line on tariffs has won a significant concession from the European Union, at least the promise of one. Trump has been warning all summer that he could add a tariff on automobile imports which would have a significant impact on automakers in Europe (as well as Japan and Mexico). Today the European Union Trade Commissioner Cecilia Malmstrom said the EU was willing to drop all of its existing tariffs on cars and other goods to zero if the U.S. would do the same in return. From the NY Times:

President Trump’s threat to impose auto tariffs on imported cars has hit America’s trading partners in a sensitive spot, sending foreign leaders from Mexico to Japan racing to the negotiating table and, on Thursday, encouraging a significant concession by Europe…

Europe is willing to reduce “car tariffs to zero, all tariffs to zero, if the U.S. does the same,” Cecilia Malmstrom, the European commissioner for trade, told members of the European Parliament on Thursday. “We would do it, if they do it. That remains to be seen.”

Europe’s change in position is the latest indication that Mr. Trump’s threat to impose 25 percent levies on foreign-made Toyotas, Mercedeses and BMWs is forcing trading partners to give ground. Europe had previously expressed a willingness to eliminate tariffs on industrial goods, but excluded cars, and said any deal had to be part of a broad free-trade agreement…

Mexico, Canada and Europe initially insisted that they would not negotiate about trade “with a gun to the head.” But existing tariffs on steel and aluminum, and the specter of tariffs on automobiles, helped change their minds.

[bert]

It is my understanding that there is a market in the EU for Jeeps and American pickups

[dila813]

They have to agree to IP Protections too, they are trying to low ball us.

[FreedomNotSafety]

Your are right the EU doesn’t make trucks. Just like the US does not make trucks. But VW does make a small truck in Europe.

So do you agree the US should drop the tariff on trucks? Because if the EU is not making trucks for the US market then the tariff is working. Unless you like tariffs because they raise revenue in which case this tariff is not working.

I think based on past exchanges you like the money tariffs raise as a way of funding spending for Social Security. Or do you want to tariffs to block imports so as to protect jobs?

[Paul R.]

What Euro auto mfgr. has a pickup truck (I assume) product US consumers would even buy in significant numbers?

[FreedomNotSafety]

Does that matter? If they do not have any trucks to sell in the US should the tariff be dropped? Or should the tariff remain to make sure there will never be any trucks sold in the US?

[central_va]

Just like the US does not make trucks.,T==

The USA makes a lot of trucks. We are the truck king.

[FreedomNotSafety]

Meant to say small truck. US mfg’s do not build a small truck.

[Eleutheria5]

You must tempt them with SUVs. First they’ll turn their noses up and say how ‘barbaric’ they are. Then some snooty European will get behind the wheel and be transformed.

[SunkenCiv]

Mexico, Canada and Europe initially insisted that they would not negotiate about trade “with a gun to the head.” But existing tariffs on steel and aluminum, and the specter of tariffs on automobiles, helped change their minds.

IOW, what they were doing there was lying. They'll do pretty much anything with a gun to the head. We know this, because we've seen the suicidal and other stupid things they do *without* a gun to their heads. Now they just come off as liars.

BTW, US auto tariffs are a small fraction of what EU auto tariffs are.

Thanks mandaladon.

[central_va]

The following “small/midsized” trucks are made in the USA: Tacoma, Frontier, Ridgeline, Colorado and the Ranger (FY2019)

[FreedomNotSafety]

Those are mid sized. The forward / doesn’t make them smal.

So your point is what? Keep the tariff to protect domestic makers from future competition from Europe or eliminate the tariff because there are no small trucks made by a European manufacturer?

[central_va]

There are no makers because there is not enough demand. Has nothing to do with the tariff. I think it Japs make a small truck but hey do make them here or import them because the Tacoma has the market, The Tacoma still has a 4 cylinder option so it WAS a small truck.

The problem is small trucks get terrible MPG so people wised up and started buying bigger pickups if the MPG is virtually the same.