Donald Trump’s tariff-wielding trade policy has left Brussels pondering how to fight back if Europe’s most prized industry is attacked.
Almost before the ink has dried on EU retaliatory measures against US steel and aluminium tariffs, European capitals are shifting attention to a far bigger risk: a US probe into whether car imports are also a threat to national security. The investigation could put some $58bn of EU-made cars and car parts in the line of fire for additional duties, according to an estimate by EU officials. This would be close to 10 times the amount of goods affected by the steel and aluminium measures.
The threat is real: Mr Trump took to Twitter on Friday to warn that EU-made cars would soon be hit by 20 per cent tariffs unless the EU removed barriers on US products.