President Donald Trump has said the US “will simply apply a TAX” on cars made in Europe if the European Union retaliates against trade penalties he is seeking on imports of steel and aluminium.
The EU is promising retaliation against American exports if Mr Trump follows through on his idea – as he says he will next week.
Mr Trump responded on Twitter: “If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US. They make it impossible for our cars (and more) to sell there. Big trade imbalance!”
He also railed against “very stupid” trade deals by earlier administrations and said other countries “laugh at what fools our leaders have been. No more!”.