Britain backs EU duties on U.S. goods - Mays spokeswoman

Britain backs EU duties on U.S. goods - Mays spokeswoman

Britain backs EU duties on U.S. goods - Mays spokeswoman

Europe's autos stocks sold off rapidly, down as much as 1.3%, and Germany's DAX index fell into negative territory, down 0.2% as big German carmakers Daimler, Volkswagen and BMW, which are heavily reliant on US vehicle sales, suffered.

The European Union has imposed additional tariffs of 25% on products such as motorcycles, orange juice, bourbon, peanut butter, cigarettes and denim - part of its response to the Trump administration's tariffs on steel and aluminum exports from Europe.

"We are left with no other choice", Malmstrom said in a statement.

The European Autos Stocks Index fell on Friday after Trump's tariff threat. "Needless to say, if the US removes its tariffs, our measures will also be removed".

"If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!"

Last month, Trump instructed his Commerce Department to begin a national security investigation that would provide the legal underpinning for new tariffs on cars.

The EU exported some 5.5 million tons of steel to the USA a year ago. The Commerce Department plans to hold two days of public comments in July on its investigation of auto imports.

Trump has repeatedly singled out German vehicle imports to the U.S. for criticism.

U.S. President Donald Trump signed executive orders in March to impose 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports, but granted temporary exemptions to the EU, Canada and Mexico. The EU does not rely on the U.S.as a market for its steel exports as much as Canada or Mexico, which are also being hit by the USA tariffs and stand to lose more. A group representing major US and foreign automakers has said it is "confident that vehicle imports do not pose a national security risk".

The imposition of tariffs has raised the specter of a full-blown trade war, which could be costly to consumers, jobs and the global economy.

German car-makers Volkswagen, Daimler and BMW build vehicles at plants in the US.

The United States in 2017 accounted for about 15 percent of worldwide Mercedes-Benz and BMW brand sales. It accounts for 5 per cent of VW brand sales and 12 per cent of Audi sales.

Related news