EU Commission head 'looking forward' to working with Trump
January 21, 2020
After their first meeting, EU Commission head Ursula von der Leyen and US President Donald Trump have struck a cautiously optimistic tone. Trump said he expects to make a trade deal, but hasn't ruled out car tariffs.
Image: picture-alliance/dpa/AP/E. Vucci
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Following his first meeting Tuesday with European Commission President Ursula von der Leyen at the World Economic Forum in Davos, US President Donald Trump said that the US wants to work with the EU to close a trade deal, but warned that he would consider imposing tariffs on European car imports if the two sides can't reach an agreement.
"If we're unable to make a deal, we will have to do something, because we've been treated very badly as a country for many years on trade,'' he said. Trump added that if the Europeans were "fair" then there "wouldn't be any problems," and said he was optimistic the US could make a deal with the EU.
Von der Leyen said that the meeting was a "good opportunity to connect personally" and that she was "looking forward to working" with President Trump.
"The American people and the European people are good friends, and this is what we're going to build on. And, indeed, we have issues to discuss — and we will negotiate," von der Leyen said.
Before their meeting on the sidelines of the World Economic Forum in Davos, Switzerland, Trump also commented on Von der Leyen's reputation as a tough negotiator, saying that was "bad news for us."
Car wars
The meeting comes as the EU and the US seek to reduce bilateral trade tensions. The Trump administration has long accused the EU of having an unfair trade advantage and has threatened to impose tariffs on European cars and car parts.
However, the White House has delayed a decision on whether to impose tariffs of as much as 25% on cars and car parts from Europe and has used these threats as leverage in negotiations.
Cars and car parts are a vital export product for European industry, particularly for Germany, the eurozone's biggest economy.
Trump's threat to slap tariffs on European cars has drawn the ire of European officials and companies. EU officials are under pressure to agree to a deal as Europe's manufacturing sector slowed down in 2019, mostly due to diminished export demand for cars.
Trump's tariffs and who they target
US President Donald Trump has repeatedly boasted that the tariffs he has imposed on trading partners are a financial windfall but, research shows it is Americans who bear the brunt of the impact. DW has an overview.
Image: picture-alliance/newscom/B. Greenblatt
Solar panels and washing machines
The first round of tariffs in 2018 were on all imported washing machines and solar panels — not just those from China. A study by economists from the Federal Reserve Bank of
New York, Columbia University, and Princeton University found that the burden of Trump's tariffs — including taxes on steel, aluminum, solar panels falls entirely on US consumers and businesses who buy imported products.
On Friday May 10, 2019 President Donald Trump imposed sanctions on $200 billion (€178 billion) worth of Chinese goods. The move raised tariffs from 10% to 25% on a range of consumer products, including cell phones, computers and toys. China's Commerce Ministry said it "deeply regrets" the US decision.
Image: Getty Images/AFP/STR
Issues with the EU
In April 2019, the United States said it wanted to put tariffs on $11.2 billion worth of goods from the EU. The list includes helicopters and aircraft from Airbus as well as European exports like famous cheeses such as Stilton, Roquefort and Gouda, wines and oysters, ceramics, knives and pajamas.
Image: Imago/Ralph Peters
EU fights back
The EU imposed import duties of 25% on a $2.8 billion range of imports from the United States in retaliation for US tariffs on European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum.
Image: Getty Images/AFP/M. Ralston
European automakers next?
May 17, 2019 is the deadline for President Trump to decide on imposing tariffs on vehicle imports from the EU. According to diplomats, Germany, whose exports of cars and parts to the United States are more than half the EU total, wants to press ahead with talks to ward off tariffs on automakers Volkswagen, Mercedes and BMW.
Image: picture alliance/dpa
India not exempt
India, the world's biggest buyer of US almonds, on June 21, 2018 raised import duties on the nuts by 20% and increased tariffs on a range of other farm products and US iron and steel, in retaliation for US tariffs on Indian steel. Trump said last month that he would end preferential trade treatment for India, which would result in US tariffs on up to $5.6 billion of imports from India.
Image: Getty Images/AFP/R. Schmidt
North American neighbors in tariff spat
Mexico on June 5, 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for US tariffs on Mexican metals. While to the north, Canada on July 1 imposed tariffs on $12.6 billion worth of U.S. goods, including steel, aluminum, coffee, ketchup and bourbon whiskey in retaliation for US tariffs on Canadian steel and aluminum.
