Trump: EU Can Avoid U.S. Tariffs by Lowering Its Own Import Taxes

President Donald Trump says the European Union faces U.S. tariffs of 25% on steel and 10% on aluminum unless the trade bloc lowers its “horrific barriers and tariffs” on goods from the U.S.

Trump also says the U.S. will levy “reciprocal taxes” against major trading partners that fail to reduce their tariffs on imported cars.

The EU, China and India currently impose taxes of 10%, 25% and 60%-75% on foreign-made vehicles, respectively. The U.S. rates are 2.5% for imported cars and 25% for imported vans and pickup trucks.

EU trade chief Cecilia Malmstrom says she received “no immediate clarity” in a meeting last weekend with U.S. Trade Representative Robert Lighthizer about how the U.S. is granting exemptions from the aluminum and steel tariffs.

Australia’s prime minister announced on Saturday that his country was exempted after a “productive” phone call with Trump. The president previously declared Canada and Mexico would be exempt from taxes on the two metals, pending a successful revamp of the North American Free Trade Agreement.