By Vivian Salama 

WASHINGTON -- President Trump said Wednesday he would impose auto tariffs on the European Union if a trade deal can't be reached between the two sides, as tensions over trade between the traditional allies continue to build.

"We're trying to make a deal, they're very tough to make a deal with," Mr. Trump said, sitting alongside Austria's Chancellor Sebastian Kurz, who was in Washington for bilateral meetings with the Trump administration. "If we don't make a deal, we'll do the tariffs," Mr. Trump said.

This week, the Commerce Department concluded its investigation into whether imported cars and parts pose a national-security threat under Section 232 of U.S. trade law.

Mr. Trump has already voiced support for levies of at least 20% on automobile imports. If the tariffs are imposed, then prices of cars from Japan, Germany and South Korea would rise sharply, assuming those countries don't receive exemptions.

"The EU have been very difficult over a period of time, over many, many years," Mr. Trump said. The president has 90 days from the delivery of the Commerce Department study to announce tariffs or other barriers, but on Wednesday, he suggested that talks -- and not the Commerce Department assessment -- will determine the outcome.

"We've studied it very carefully, we've seen the results...the bottom-line result is whether we can make a deal with the EU," he said.

Mr. Trump has touted previous tariffs his administration has developed under a national-security law -- the ones on steel and aluminum imports -- as a way to protect vital American industries from unfair foreign competition, while simultaneously putting pressure on partner countries to open up their markets to more American goods.

On Wednesday, he was more measured about the potential outcome where autos are concerned, simply saying, "We'll see what happens."

There has been virtually no backing from the domestic auto industry for tariffs, although the United Auto Workers has voiced cautious support.

The mere threat of auto tariffs by the Trump administration against many U.S. allies has provoked bipartisan backlash on Capitol Hill.

"I hope the administration takes a step back & reconsiders any auto tariffs," Republican Sen. Rob Portman of Ohio tweeted Tuesday. "Misuse of Section 232 trade tool hurts #Ohio workers & consumers."

Write to Vivian Salama at vivian.salama@wsj.com

(END) Dow Jones Newswires

February 20, 2019 16:43 ET (21:43 GMT)

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