While Germany might be prepared to negotiate tariffs with the United States, the French government insists that the U.S. should expect united retaliation from the European Union if higher tariffs are enforced.
Speaking during a recent economic conference in southern France, the country’s Finance Minister Bruno Le Maire said a trade war between the two superpowers is already under way, Automotive News reports.
“If tomorrow there is an increase in tariffs, like in the car industry, our reaction should be united and strong to show that Europe is a united and sovereign power.
“The question is no longer whether or not there will be a trade war, the war has already started. Let it be known that if we are attacked we will react collectively and we will react firmly,” Le Maire said.
Last month, U.S. President Donald Trump threatened to slap vehicles built in the EU and imported into the U.S. with a 20 per cent tariff.
As it stands, the United States imposes a 2.5 per cent tariff on passenger vehicles from the EU and 25 per cent on pickups, while the EU slaps a 10 per cent tariff on all imported U.S. cars.
A couple of days ago, German Chancellor Angela Merkel said the country would consider relaxing its tariffs it it meant the United States didn’t follow through with its threats. However, the EU cannot lower import tariffs exclusively on U.S.-built cars and would have to do the same for all members of the World Trade Organization.
