US President Donald Trump today threatened to slap a 20 per cent duty on all cars imported from Europe unless the European Union removed its trade barriers and tariffs on dozens of American products which took effect.
Trump's warning comes after the European Union imposed tariffs on $3.4 billion in US products, ranging from bourbon to motorcycles, in a tit-for-tat response to US President's decision to slap hefty tariffs on European steel and aluminium exports.
"Based on the tariffs and trade barriers long placed on the US and it great companies and workers by the European Union, if these tariffs and barriers are not soon broken down and removed, we will be placing a 20 per cent tariff on all of their cars coming into the US," Trump threatened in a tweet.
"Build them here!" Trump said, indicating that he wants the cars to be build in the US and not to be imported from overseas.
Trump imposed tariffs of 25 per cent on European Unioin steel and 10 per cent on aluminum on June 1. Europeans claim that breaks global trade rules.
Earlier, Trump had said the "unfair" foreign trade practices were not merely an "economic disaster" but a "security disaster" and by imposing tarffs he was defending America's national security.
The action taken by the president had followed a nine-month investigation by the Department of Commerce, documenting a growing crisis in US steel and aluminium production, threatening the security of the country.
"It is also bad for US economically and with jobs," Trump had rued.
Transatlantic ties are at their lowest level for many years due to rows over a host of issues including the tariffs, the Paris climate agreement, the Iran nuclear deal and the new US embassy in Jerusalem.
Relations plumbed new depths at the recent G7 summit when Trump abruptly rejected the joint statement and bitterly insulted his Canadian host, Prime Minister Justin Trudeau.
-- PTI