Some of the biggest car exporting countries in the world are reportedly planning to hold a meeting in the absence of United States of America to talk about their response to the tariff threat of US President Donald Trump on car imports.
It was reported by Bloomberg that representatives from Japan, Canada, Mexico, South Korea and the European Union, are planning to meet without President Trump in Geneva on the 31st of July to coordinate a response if the president imposes levies on car imports, as well as talk about the possible reforms to the World Trade Organisation (WTO), which President Trump has threatened to abandon.
The said news comes after the meeting of President Trump with Jean-Claude Juncker, the president of the European Commission. Their meeting was held in Washington and the two leaders were able to discuss the issues surrounding the trade relations. The meeting prompted optimism that the emerging trade war was thawing.
During the meeting, President Trump agreed to act in resolving the issue over the tariffs on steel and aluminium, which he imposed on the European Union earlier this summer, as well as discarding other possible penalties, including the potential tariffs on the massive car industry of the European Union.
However, the United States is currently planning some sweeping changes to the imports of vehicles after President Trump urged for a national security investigation back in May, saying that the automotive sector was “critical to our strength as a nation.”
Wilbur Ross, the Commerce secretary, pledged to launch a “thorough, fair and transparent investigation,” however, said foreign imports may have “eroded” the power of the carmakers of the United States.