The us began imposing 25 per cent and 10 per cent tariffs on imports of steel and aluminium from the eu and elsewhere in June, and in late June Mr Trump threatened on twitter to impose a unilateral 20 per cent tariff on all cars imported from the eu. Mr Trump had previously stressed that us tariffs on eu car imports were only 2.5 per cent, while the eu imposed a 10 per cent tariff on us cars.
The European Union has prepared a bargaining chip for Mr. Juncker's visit to the United States in response to the threat of car tariffs. The European Union is preparing a new list of retaliation against U.S. goods ahead of Mr. Juncker's meeting with Mr. Trump, bloomberg reported last week, citing people familiar with the matter. The measure would be implemented immediately if the us imposed tariffs on European car exports, the person said.
The German economic weekly later reported that the list of retaliatory measures against us car tariffs would target us coal, pharmaceuticals and chemicals in a much wider range than previous anti-regulation measures.
As things stand, the United States shows no signs of backing down and the European Union is sticking to its demands, so there is no optimism about how much Mr. Juncker will achieve. "No one is optimistic," the financial times quoted a senior eu diplomat as saying.