PoliticsForeign Policy


Merkel Warns New Auto Tariffs Could Start A Trade War

The German Chancellor warned President Donald Trump not to follow through on his threat to implement a 20 percent tariff on cars from Europe.
Posted at 2:14 PM, Jul 04, 2018

German Chancellor Angela Merkel is warning President Donald Trump not to implement tariffs on car imports. 

In May, the Commerce Department started an investigation into possible auto tariffs, and a few weeks later in a tweet, Trump threatened a 20 percent tax on all cars coming into the U.S. from Europe.

Merkel said Wednesday "the global economy depends on us working together in a spirit of partnership." She also said taxing cars from the European Union could start an all-out trade war

The World Trade Organization is also keeping a close eye on the global exchange of goods. A new report on the state of trade among G20 countries said "the increase in trade-restrictive measures" and "increasing trade tensions ... should be of real concern to the international community."