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Trump warns of 'severe' consequences if EU won't hold trade talks

AFP  |  Washington 

US warned the on Thursday of consequences that will be "severe economically" if fails to enter trade talks.

The comments came after the on Thursday failed to back the launch of trade talks with Washington, dealing an unexpected blow to efforts to avert a trade war.

has threatened to impose tariffs on auto imports, which would hit German carmakers especially hard.

Pursuing a trade deal was the central part of a truce agreed in July when and pledged no new tariffs following the US tariffs on and aluminum.

"The treats us very, very unfairly," Trump told reporters at the

"They're willing to talk to us. If they don't talk to us we'll do something that will be severe economically. We'll tariff a lot of their products coming in."

But he added, "It will probably work out. They're negotiating." Juncker is working with the on the parameters for negotiations with the

While the parliament only has an advisory role, the setback underlines deep transatlantic divisions: insists the talks include agriculture, but the EU has steadfastly refused.

Powerful Germany deeply wants the deal in order to placate Trump and avoid the auto tariffs that would punish the country's cherished exports, a has labeled "frightening."

is dragging its feet, fearing that entering trade negotiations with Trump could fire up domestic opposition just months ahead of European elections, set for May 22 to 26.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 14 2019. 22:45 IST