The Commission’s reaction to US President Donald Trump’s decision was instantaneous to proceed with 25% duties on car imports in the US. The imposition of duties with power from April 2 – a day of “liberalization” according to Trump – is expected to hit the European automotive industry while escalating the ongoing EU -US trade war.

More than 1/5 of European cars exports is intended to the US, with Germany, Italy, Hungary and Poland being more exposed to new “punitive” US duties. For a long time, Donald Trump has specifically targeted the German automobile industry, condemning the imposition of a 10% European tariffs on US car imports. “If you do not have factories here (US in the US), you will be forced to build,” he said.

Her deep regret for the US decision was expressed by Ursula von der Layenstressing that “duties are taxes, bad for businesses, worse for consumers equal to the US and the EU.” The president of the Commission also said that Europe would evaluate duties, while expecting that further measures will be announced by the White House in the coming days.

Open the possibility of retaliation

Although the formalities in its announcement were careful, the president of the Commission left the possibility of retaliation against the United States. “The EU will continue to seek solutions through negotiations, while ensuring its financial interests,” he noted. If Trump’s duties are really implemented, the consequences will be heavy for the European automotive industry, which is already facing reduced sales due to competition with the cheapest Chinese cars imported into Europe.

Visit of Commerce Commissioner to Beijing

For this reason, today’s visit by Commissioner Maros Sefkovic to Beijing is of additional interest as it will meet with a series of Chinese ministers and officials. Although last year, the President of the Commission imposed additional 35% duties on the imports of Chinese electric cars, analysts estimate that under the “pressure” of Germany and Spain who had reacted to the measure -as they seek to continue their sales. In any case, Maros Shefkovic’s “mission” to China will not be easy, as it is expected – according to the Commission – raising EU concerns about the practices of unfair competition that has been followed by Beijing for years, especially in the automotive sector.

In the midst of the trade war that the US has declared to China, perhaps Brussels may eventually pursue new “alliances” on the basis of a mutually beneficial relationship with Beijing.