President Donald Trump upped the trade rhetoric Tuesday ahead of his meeting Wednesday with European Commission President Jean-Claude Juncker, threatening even more tariffs on countries who don’t treat the U.S. fairly.
Countries that have treated us unfairly on trade for years are all coming to Washington to negotiate. This should have taken place many years ago but,
as the saying goes, better late than never!— Donald J. Trump (@realDonaldTrump) July 24, 2018
The president is some pushback over tariffs, mostly from farmers but even from some Republican lawmakers. Last week, Utah Sen. Orrin Hatch, the Republican chairman of the Senate Finance Committee, said he will seek legislation to curb the administration’s authority if it continues “with its misguided and reckless reliance on tariffs.”
Undeterred, the Trump administration has already levied tariffs of $34 billion in Chinese goods, with another $16 billion planned to begin soon. Trump said last week in an interview with CNBC, “I’m willing to go to 500,” referring to the roughly $500 billion in goods imported from China last year.
The U.S. ran a $376 billion trade deficit with China during 2017, and is already up to $152 billion over the first five months of 2018.
Trump is standing tall with his demands, even with allies including Canada, which has been hit with steel and aluminum tariffs, and the European Union, which could be hit even harder by future auto tariffs.
The Commerce Department is currently examining whether auto imports pose a threat to national security, which will only escalate things further if the administration decides to levy more tariffs. Last year the U.S. imported $192 billion in vehicles and $143 billion in auto parts — figures that dwarf the $29 billion in steel and $23 billion in aluminum imports for 2017.
EU Trade Commissioner Cecilia Malmstrom said last week the 28-nation bloc would be forced to impose “rebalancing measures” if Trump escalates tensions with auto tariffs.
“If the U.S. would impose these car tariffs, that would be very unfortunate,” said Malmstrom. She said the EU was preparing “a list of rebalancing measures there as well. And this we have made clear to our American partners.”
The threat didn’t seem to deter Trump in the least, who tweeted Tuesday, “Tariffs are the greatest!”
Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that – and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be Great!
— Donald J. Trump (@realDonaldTrump) July 24, 2018
The president ended his flurry of trade tweets with one final salvo, touting the “Best financial numbers on the Planet.”
Our Country is doing GREAT. Best financial numbers on the Planet. Great to have USA WINNING AGAIN!
— Donald J. Trump (@realDonaldTrump) July 24, 2018
Trump is meeting with Juncker on Wednesday in Washington to see if the U.S. and E.U., which held a $150 billion trade advantage last year, can come to an agreement to head off a trade war. More to come this week as this story develops.
The Associated Press contributed to this report.
