U.S. President Donald Trump is likely to move ahead with tariffs on imported vehicles, a move that could prompt the European Union to agree a new trade deal, said Senate Finance Committee Chairman Charles Grassley on Wednesday.
“I think the president’s inclined to do it,” the Republican senator told reporters. “I think Europe (is) very very concerned about those tariffs … It may be the instrument that gets Europe to negotiate.”
U.S. Commerce Department recommendations into whether Trump should impose tariffs of up to 25 percent on imported cars and parts on national security grounds are due by mid-February. A Commerce Department spokeswoman declined to comment.
Grassley, who has had regular talks with Trump and U.S. Trade Representative Robert Lighthizer on trade issues, said he did not like new tariffs but “they are a fact of life when Trump is in the White House.” He said they may have been an “effective tool” in getting China, Canada, Mexico and others to negotiate on trade.
Iowa senator Grassley also wants the EU to agree to include agricultural issues in trade talks, although EU trade commissioner Cecilia Malmström said last week the 28-country bloc could not negotiate on agriculture.
The White House has pledged not to move forward with imposing tariffs on the European Union or Japan as long as it is making constructive progress in bilateral trade talks.
Trump has urged the EU to drop its 10 percent tariff on imported vehicles. The U.S. passenger car tariff is 2.5 percent, while it imposes 25 percent tariffs on pickup trucks.
Trump has repeatedly threatened to impose new auto tariffs.
“Cars is the big one,” Trump said last year.
The U.S. Trade Representative’s office last week published its objectives for EU talks, including seeking comprehensive agriculture access.
The prospect of 25 percent tariffs sent shockwaves through the auto industry, with U.S. and foreign-brand producers lobbying against it.
German automakers met with Trump in December to urge him not to impose tariffs. On Monday, Volkswagen AG said it would invest $800 million in its Chattanooga, Tennessee operations and add 1,000 jobs to build electric vehicles. That drew praise from Trump.
Automakers say imposing 25 percent tariffs would raise cumulative prices for U.S. vehicles by $83 billion annually and cost hundreds of thousands of jobs. They argue there is no evidence auto imports pose a national security risk.
The Alliance of Automobile Manufacturers, whose members include General Motors Co
Earlier this week, Senators Doug Jones and Lamar Alexander re-introduced legislation to delay any 25 percent auto tariff and require the International Trade Commission to conduct a comprehensive study before tariffs could be applied.
Reporting by David Shepardson, Editing by Rosalba O’Brien
UK travel giant Thomas Cook set to collapse: report
Thomas Cook's 178-year existence was reported to be coming to an end on Monday after the British travel firm struggled to find private investment to keep it afloat, potentially affecting thousands of holidaymakers.
The operator has said it needs £200 million ($250 million) or else it will face administration, which could affect 600,000 holidaymakers and require Britain's largest peacetime repatriation.
A source close to the negotiations told AFP that the company had failed to find the cash from private investors and would collapse unless the government intervened.
But ministers are unlikely to step in due to worries about the pioneering operator's longer-term viability, the Times reported, leaving it on the brink.
‘We are the people’: Watch Billy Porter get a standing ovation for his passionate speech at the Emmys
In a powerful and passionate speech accepting his Emmy, "Pose" actor Billy Porter showered the audience with love and proudly reminded all of their right to belong and be loved.
"Oh, my God. God bless you all! The category is love, y'all, love!" Porter exclaimed.
The epic FX show "Pose" depicts Black and Latinos in the LGBTQ ballroom culture of New York City in the 1980s in the first season and the early 1990s in the second season.
"I am so overwhelmed and so overjoyed to have lived long enough to see this day," he said. "James Baldwin wrote, 'It took many years of vomiting up the filth I was taught about myself and half-believed, before I was able to walk on the earth as though I had a right to be here.' I have the right. You have the right. We all have the right."
Paris show of King Tutankhamun artifacts set new record with 1.42 million visitors
A blockbuster Tutankhamun show set a new all-time French record Sunday, with 1.42 million visitors flocking to see the exhibition in Paris, the organisers said.
The turnout beat the previous record set by another Tutankhamun show billed as the "exhibition of the century" in 1967, when 1.24 million queued to see "Tutankhamun and His Times" at the Petit Palais.
"Tutankhamun: Treasures of the Golden Pharaoh" -- which has been described as a "once in a generation" show -- will open in London in November.
The last time a show of comparable size about the boy king opened there in 1972 it sparked "Tutmania", with 1.6 million people thronging the British Museum.