7/20/2018, 12:34 PM (Source: TeleTrader)
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Merkel says US auto tariffs are against WTO rules

German Chancellor Angela Merkel stated on Friday that the possible United States tariffs on cars coming from the European Union represent a clear breach of World Trade Organization (WTO) rules and would hurt the prosperity of many people in the EU as well as in other places. The chancellor added that the bloc is already preparing countermeasures in case the US decides to go through with auto tariffs, but stressed that "this is by far the worst solution" to the ongoing trade dispute.

In June, US President Donald Trump first threatened to impose a 20% tariff on EU car imports, while the US Ambassador to Germany Richard Grenell reportedly said that Washington is ready to give up on the idea of raising tariffs on auto imports from the EU if the bloc abandons its duties on American vehicles. However, it was reported yesterday that the EU is preparing new retaliatory tariffs on $8.5 billion worth of US imports, including coal, pharmaceutical and chemistry goods in case Washington goes through with the measures. Also, Trump announced that the car industry will be the focus of his next week's meeting with European Commission President Jean-Claude Juncker.

Breaking the News / FH