Strasbourg – The European Commission (EC) has sought to prevent the introduction of duties on cars by the USA and, in the event of new American duties, will decisively defend the European industry, economy, and consumers in the EU. This was stated by Commissioner for Trade and Economic Security Maroš Šefčovič in an interview with TASR.
American President Donald Trump announced at the end of March (26. 3.) that the USA would impose duties of 25% on the import of “all cars not manufactured in the United States.” In this regard, he has already signed an executive order, according to which the duties will take effect on Wednesday (2. 4.).
Šefčovič noted that this was one of the topics he discussed during his February visit to the USA and reiterated it at the end of March during further talks with representatives of the American administration in Washington.
“We will respond again quickly, adequately. We will decisively defend the European industry, European consumers, and the European economy,” he emphasized, referring to the retaliatory measures the EU executive is preparing.
The Slovak commissioner also pointed out that the EU has made efforts to prevent the scenario of duties and countermeasures. However, it was made clear to him as early as February that the American side was preparing broader measures.
“There was a clear task given to the U.S. Department of Commerce to develop a so-called reciprocity report. I have to say broadly defined reciprocity, in which American experts, for example, want to include such an item as value-added tax. Some consider it a tax that has a discriminatory character against American products,” he explained.
He clarified that the American view of the discriminatory nature of VAT is not true, as this tax in the EU applies to all products from America or Europe. According to him, the American side should see this as a form of business taxes, as they apply there too.
Regarding the duties on cars themselves, during negotiations in Washington, Šefčovič expressed the European Commission’s readiness to look at how both sides could reduce existing duties on cars.
“Not increasing duties, but reducing them. Because I believe that would benefit the automotive industry on both sides. I even suggested that we could revive negotiations from several years ago – on how to facilitate the recognition of mutual technical standards in such a way as to reduce costs and speed up the entire process of recognizing new car models on both sides of the Atlantic,” Šefčovič explained.
In this area, he proposed to Americans to ensure greater universalization of automotive standards, which, according to him, would further untie the hands of the automotive industry and offer it development opportunities. (April 1)
“We will respond again quickly, adequately. We will decisively defend the European industry, European consumers, and the European economy.” Maroš Šefčovič