Trump threatens EU with 35% tariffs if it does not invest $600 billion in US

A controversial investment promise that is part of the B trade deal The E-US will have to be respected by the EU or the total tariffs of 35% will apply to the bloc, Trump warned.

Trump was asked about the deal he reached with handshakes with the president of the Ursula Commission von der Leyen in Scotland, writes euronews.

He backed the US position which a White House fact sheet declared that the agreement included a promise for the EU to invest $600 billion in the US by the end of its second mandate.

This new investment is in addition to over 100 billion dollars that EU companies already invest in the US every year”, the fact sheet after the deal said.

The European Commission is unable to draft and implement investments on behalf of the private sector.

The 600 billion dollars have been described by the Commission as an indicator based on executive contacts with industry.

The “is not something that the EU, as public authority, can guarantee is something based on the purpose of private companies”, a senior official said last week.

Asked what elements were in the promise, Trump said if it didn't happen, “then they paid the 35%1> tariff.

Trump said the investment promise was one of the reasons why he had reduced the tariffs to a total rate of 15%, so that if it is not met, then higher tariffs will return to power.

Otherwise, the Commission on Tuesday suspended a package of commercial counter-mass aimed at US goods worth 93 billion euros, which was scheduled to go into effect on August 7th, while continuing to negotiate a joint declaration formalising the deal reached by von der Leeyen and Trump in Scotland. /Periscope/