Investing.com - The European Union is preparing to impose tariffs on $20 billion of U.S. imports if Washington follows through on threats to impost tariffs on auto imports from the bloc, EU trade Commissioner Cecilia Malmstrom said Wednesday.
Malmstrom said the tariffs would be introduced if U.S. President Donald Trump decided to impose tariffs on $50 billion of car imports from Europe.
Trump is to host an EU delegation, including Malmstrom and European Commission President Jean-Claude Juncker in the White House for trade talks later Wednesday.
The talks come amid heightened trade tensions between the EU and Washington after the U.S. slapped tariffs on steel and aluminum imports from the bloc, which led to Europe putting 25% tariffs on bourbon whiskey, peanut butter, motorcycles and jeans.
Ahead of the talks, Trump tweeted that tariffs are “great”, and claimed the U.S. is being treated as a “piggy bank” by countries who run a trade surplus with it.
He also called for both sides to completely abolish tariffs, subsidies and other trade barriers.