Trump on EU Offer to Drop Tariffs: “Not Good Enough”

President Donald Trump tells Bloomberg News that an offer made hours earlier by the European Union to eliminate its 10% tariff on foreign cars is “not good enough.”

Trump’s reason: “Their consumer habits are to buy their cars, not to buy our cars.” He didn’t explain how he would like the EU to address that statement. His dismissal of zero tariffs comes a month after he suggested the EU eliminate its tariffs.

Separately, the president reiterates a threat made in July to withdraw the U.S. from the Geneva-based World Trade Organization “if they don’t shape up.”

Trump asserts that the U.S.-backed terms that launched the WTO after World War II are “the single worst trade deal ever made.” Until now, that is how he described the North American Free Trade Agreement now being renegotiated.

The EU and U.S. began trade talks at the end of July after agreeing to suspend their tit-for-tat tariff war. It began on June 1 when the U.S. imposed import tariffs on steel (25%) and aluminum (10%). The EU responded with a like value of tariffs on such U.S. goods as blue jeans, bourbon, peanut butter and motorcycles.

The U.S. currently levies taxes of 2.5% on cars and 25% on light trucks and SUVs from most countries.

Talks between the two sides to date have been about nonautomotive manufactured products. But Trump continues to say he will impose tariffs as great as 25% on all vehicles from the EU if trade negotiations between the countries fail to eliminate tariffs, non-tariff barriers and subsidies.