By: David Shepardson
WASHINGTON (Reuters) – U.S. President Donald Trump threatened to impose a 20 percent tariff on all European Union-assembled cars coming into the United States, a month after the administration launched an investigation into whether auto imports pose a national security threat.
“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!” Trump wrote on Twitter Friday.
Autos stocks fell on the news. The European Autos Stocks Index fell sharply after Trump’s 20 percent tariff tweet and was last down 1.25 percent. Ford Motor Co shares went into the red and were down 0.5 percent, while General Motors Co shares were off 0.3 percent.
The U.S. Commerce Department is investigating whether imports of automobiles and auto parts pose a risk to national security. The deadline for completing the investigation is February, 2019, but Commerce Secretary Wilbur Ross said Thursday said the department aims to wrap up the probe much earlier, by late July or August.
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