EU to hit back if U.S. imposes tariffs on car imports

EU, Japan agree to eliminate nearly all tariffs

The European Union says it is already preparing measures to retaliate against the U.S. if President Donald Trump imposes tariffs on imported cars and auto parts.

EU Trade Commissioner Cecilia Malmstrom said Thursday that the 28-nation bloc would be forced to impose more "rebalancing measures" if Trump escalates trade tensions with the auto tariffs. They would come on top of tariffs the U.S. put on steel and aluminum imports, which the EU responded to with duties on U.S. products.

Malmstrom said: "If the U.S. would impose these car tariffs that would be very unfortunate." She said the EU was preparing "a list of rebalancing measures there as well. And this we have made clear to our American partners."

Malmstrom and EU Commission President Jean-Claude Juncker will visit Trump next week.

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