The deal for lowered tariffs on European cars imported into the US has been put on hold, and it’s not President Trump’s fault. Instead, the blame rests on the European Union and it’s lack of action.
Tesla is now leasing used cars to customers.
Late last month, a deal was struck between the US and EU which would reduce the tariffs on European cars to just 15 percent, down from 27.5 percent. The move was applauded by many as a way of opening up more trade between the two world powers.
But that deal was made between President Trump and European Commission President Ursula von der Leyen. She even went so far as to tell reporters afterward there has been a trade “imbalance” between the United States and Europe that has favored the latter.
While she clearly feels the new deal would allow both economies to thrive, it seems perhaps not everyone agrees. That’s one possible explanation for why the EU hasn’t lowered its own tariffs of US goods, reports CNN.
As long as the EU fails to take action, the lower tariffs on its goods imported to the US won’t become reality. And yet, there are media outlets which are pointing the finger at President Trump. The ball is clearly on the EU’s side of the court and leaders there are failing to act.
Perhaps they’re insulted that there are any tariffs. Perhaps they should look at their own history of placing tariffs on us goods, including cars.
What this means for consumers here is cars from European brands that are made in Europe will likely come at a higher cost than if the EU were to take action. Considering how many people drive such vehicles as status symbols, maybe that won’t bother them.
Image via Porsche
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