E.U. Tariffs On U.S. Cars 10 Per Cent Versus 2.5 Per cent

E.U. Tariffs On U.S. Cars 10 Per Cent Versus 2.5 Per cent.

“Europeans have little appetite for U.S. cars these days. The E.U. could comfortably equalise with the U.S. at 2.5 per cent”

With all the sound and fury obscuring possible outcomes of a  U.S./E.U. auto trade dispute, the Financial Times Lex column reminds us of a simple fact which might have been overlooked and which could be easily fixed.

There is currently an imbalance of tariffs in auto trade between the U.S. and the E.U. Americans charge 2.5 per cent on European auto imports while Europe charges U.S. importers 10 per cent.

“Hitting cars with a 25 per cent levy (as threatened by President Donald Trump) would kick back against the E.U.’s anachronistic 10 per cent charge on U.S. vehicles. Europeans have little appetite for U.S. cars these days. The E.U. could comfortably equalise with the U.S. at 2.5 per cent,” said Lex.

How hard could that be?