German industry group hits back at U.S. tariffs

The head of an influential German industry organization is calling on the U.S. and the European Union to put an end to the escalating trade dispute between the two economic superpowers.

"Europe mustn't allow itself to be blackmailed and should act with confidence" Dieter Kempf of the Federation of German Industries said Monday, ahead of European Commission President Jean-Claude Juncker's visit to Washington on Wednesday, 

Kempf noted that German automakers alone employ 180,000 people in the U.S. and 60 percent of the cars they produce are made for export.

He called on U.S. President Donald Trump to "scale down the rhetoric" and abolish tariffs that he said were imposed "under the cover of national security." Kempf called for talks on resolving trade disputes to take place at the World Trade Organization.

Last week, EU Trade Commissioner Cecilia Malmstrom said that the 28-nation bloc would be forced to impose more "rebalancing measures" if Trump escalates trade tensions with the auto tariffs. 

They would come on top of tariffs the U.S. put on steel and aluminum imports, which the EU responded to with duties on U.S. products.

Malmstrom said: "If the U.S. would impose these car tariffs that would be very unfortunate." She said the EU was preparing "a list of rebalancing measures there as well. And this we have made clear to our American partners."