US President Trump is stepping up his war of words on trade tariffs, and has threatened to "apply a tax" on car imports from the European Union.
Trump said that the US had been taken advantage of by other countries due to "very stupid" trade deals.
The entire dispute began on Thursday after Trump threatened to impose heavy taxes on steel and aluminium imports.
Trump takes to Twitter to speak his mind
If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!
Trump's vow to impose hefty tariffs on steel and aluminium imports drew sharp criticism from the World Trade Organization (WTO) and the International Monetary Fund (IMF).
Following Trump's proposal of slapping 25% and 10% import tariffs on steel and aluminium respectively, EU trade chiefs have reportedly been mulling slapping a 25% tax on select imports from the US.
Where the auto industry stands in the entire dispute?
The US is the largest export market for EU-made cars - making up 25% of the $237bn worth of motor vehicles exported in 2016.
Since Germany is responsible for half of the EU's car exports, proposed import tariffs would hurt it the most.
However, Trump overlooks the fact that German automakers manufacture thousands of cars in the US, thus providing jobs to many Americans.
Trump criticizes earlier trade deals, says "no more!"
The United States has an $800 Billion Dollar Yearly Trade Deficit because of our “very stupid” trade deals and policies. Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!