Trump ‘inclined’ to impose new US auto tariffs: Senator

The White House has pledged not to move forward with imposing tariffs on the European Union or Japan as long as it is making constructive progress in bilateral trade talks.

Trump has urged the EU to drop its 10 percent tariff on imported vehicles.

U.S. President Donald Trump is likely to move ahead with tariffs on imported vehicles, a move that could prompt the European Union to agree a new trade deal, said Senate Finance Committee Chairman Charles Grassley on Wednesday.

“I think the president’s inclined to do it,” the Republican senator told reporters. “I think Europe (is) very very concerned about those tariffs … It may be the instrument that gets Europe to negotiate.”

U.S. Commerce Department recommendations into whether Trump should impose tariffs of up to 25 percent on imported cars and parts on national security grounds are due by mid-February. A Commerce Department spokeswoman declined to comment.

Grassley, who has had regular talks with Trump and U.S. Trade Representative Robert Lighthizer on trade issues, said he did not like new tariffs but “they are a fact of life when Trump is in the White House.” He said they may have been an “effective tool” in getting China, Canada, Mexico and others to negotiate on trade.

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Iowa senator Grassley also wants the EU to agree to include agricultural issues in trade talks, although EU trade commissioner Cecilia Malmström said last week the 28-country bloc could not negotiate on agriculture.

The White House has pledged not to move forward with imposing tariffs on the European Union or Japan as long as it is making constructive progress in bilateral trade talks.