The american President Donald Trump has stepped up his war of words on trade of the rates, threatening to “impose a tax on car imports from the European Union.
Mr Trump said in other countries have taken advantage of US for years because of his “very stupid” affairs of trade.
The trade brawl began on Thursday, when Mr. Trump has promised to impose heavy duties on steel and aluminum imports.
That brought a harsh response from trade partners and the criticism from the IMF and the WTO.
EU trade chiefs would have been considering slapping 25% of the rates of around $3.5 bn (Â£2.5 bn) in imports from the USA, as a result of Mr Trump’s proposal of a 25% import duties on steel and 10% aluminum.
They would target iconic exports, including Levi’s jeans, Harley-Davidson, motorcycle, and Bourbon whiskey, European Commission head Jean-Claude Juncker, has said.
Five reasons why trade wars is not easy to win
Steel prices: What impact will they really have?
What is Mr. Trump said now?
In a tweet Saturday, the president said: “If the EU wants to further increase their already huge tariffs and barriers on us companies to do business there, we simply apply a Tax on their Cars, who have to pay all in US.
“That makes it impossible for our cars (and more) to sell. The great imbalance in trade!”
A second tweet was denounced by the “$800 Billion Annual Trade Deficit because of our “very stupid” trade agreements and policies”.
Mr Trump added: “Our work and wealth are given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!”Like many states-made cars go to the US?
The UNITED states is the largest export market for EU cars – which constitute 25% of the â‚¬192bn (Â£171bn; $237bn) worth of motor vehicles, the block is exported in 2016 (China was second with 16%).
Germany is responsible for just over half of the EU exports of cars, so the new rates would hurt the auto industry. But the German automakers to build hundreds of thousands of cars in the UNITED states each year, providing many jobs that German officials say that Mr. Trump faces. Do fellow Republicans to back Mr. Trump trade threats?
Some have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.
Senator Orrin Hatch said: “I am very surprised, she has had very bad advice from someone. The people who are going to pay these rates will be American citizens.”
Senator Ben Sasse, said: “Kooky 18th Century, the protectionism jack up prices for American families – and you will be asked to retaliation.”
And industry bodies, such as the U.S. Motor and Equipment Manufacturers Association have expressed deep concern, saying that the benefits from recent cuts in corporation tax “could be for nothing.”
But Mr. Trump, the Secretary of Commerce Wilbur Ross stood firmly behind the plans, saying that the president was “fed up with the constant ability, fed up with the contribution of exports to us”.Because he wants to impose tariffs?
He married his “America First” policy and the narration, which is always a raw deal in its commercial relations with other countries.
Mr Trump tweeted on Friday that the UNITED states is “losing billions of dollars” and would like to find a commercial war “easy to win”.
The end of the Twitter post by @realDonaldTrump
The president is the use of a clause in the international trade rules, which allows rates for reasons of national security.
But his move is not totally out of the blue.
The department of commerce recommended tariffs in the month of February after conducting a review under rarely invoked the national security the rules contained in the 1962 trade law.
Mr Trump had previously announced duties on solar panels and washing machines in the month of January. What is the international response has been?
The IMF said that others may follow the us leader earlier, supporting tough trade restrictions were needed to defend the national security.
Canada said that the rates would cause disruption on both sides of the border. The prime Minister Justin Trudeau slammed the rates as “absolutely unacceptable”.
He told reporters in Ontario was “confident that we will continue to be able to defend the Canadian industry”.
It is one of a number of countries, including Brazil, Mexico, and Japan, which have said they will consider retaliatory steps if the president continues with his plan for the next week.
What would China do, in a trade war?
Where Trump is on the world trade
World Trade organization Director-General Roberto Azevedo, said: “A trade war is in nobody’s interests.”
But Mr. Trump tweeted, “Trade wars are good.”
Are trade wars good?
Analysis of Theo Leggett, business correspondent
If trade wars were really good and easy to win, the World Trade Organisation, probably, would not exist.
Most of the countries believe that the negotiations are carried out and disputes settled through a rule-based system. The introduction of trade barriers on tit-for-tat basis has the potential to damage society on both sides.
But that is unlikely to bother Mr Trump. His campaign rhetoric drew heavily on the perceived threat to the traditional US industries from foreign intruders acting unfairly. He is simply continuing in that vein.
And it is unlikely to register with the workers of the steel mills of Pennsylvania and Indiana. Worried about their jobs and the future, many welcome Mr Trump’s comments.