EU Warns US Against Car Tariffs

Devin Lawrence
July 4, 2018

After five hours of talks, they agreed to establish "transit centers" on Germany's border with Austria where asylum-seekers would be evaluated and, if it turned out they already had applied for protection in another European Union country, sent back to that country.

The group's analysis of the harm each U.S. state could suffer from retaliation by USA trading partners painted a gloomy picture that could bring pressure on the White House from Republicans ahead of congressional elections in November.

The trade strains were compounded by an European Union threat to hit the United States with retaliatory tariffs, lingering concerns over President Donald Trump's dislike for the World Trade Organization, and by data showing the weakest euro zone manufacturing growth in 18 months.

Schinas said European vehicle makers create over half a million jobs in the U.S.

"The administration is threatening to undermine the economic progress it worked so hard to achieve", said Chamber President Tom Donohue in a statement.

The European Union warned on Monday that up to $294 billion worth of United States exports would face counter-measures if President Donald Trump went through with his threat to slap duties on auto imports.

The Australian dollar slumped almost 1 per cent overnight to a low of 73.1 as the greenback rose and amid ongoing trade tension. It has already backed candidates who share those goals in Republican primaries.

Moog isn't the only USA business facing problems because of Trump's trade tariffs.

"We'll spare no effort, be it at the technical or political level, to prevent this from happening", a spokesman for the Commission told reporters, adding that Commission President Jean-Claude Juncker's trip to Washington later this month would seek to stop any new USA tariffs.

The letter also said any auto tariffs would "damage further the reputation" of the U.S., according to the FT. Any tariffs on European Union cars would hit Germany hard.

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On Monday, he threatened to take action against the World Trade Organisation after media reports said he wanted to withdraw from the global trade regulator. The EU has a 10% levy, compared with 2.5% for cars entering the United States.

The EU has been engaged in a dispute with the USA over the steel and aluminium tariffs, which were introduced on June 1. But Italy blocked their formal adoption until the migration issue was fully addressed. It's the same approach the Trump administration used before it slapped tariffs on steel and aluminum imports earlier this year.

So if you support Moog and their plight, remember this will affect most United States based synth manufacturers - please do what you can. Traders are reacting to retaliatory events and the imposition of fresh tariffs at the end of the week.

The EU sent comments to the USA on whether auto imports pose enough of a threat to US national security to justify tariffs and estimating the economic impact.

Harley-Davidson, which dominates the heavyweight USA motorcycle market, subsequently announced it would shift some U.S. production overseas to avoid higher costs for European Union customers.

Owing in part to President Donald Trump's tax reform, which cut the corporate tax rate to 21% from 35%, companies listed in the S&P 500 Index boosted stock buybacks, setting a new record for the group during the first quarter.

Trump is also considering a 20 percent tax on imported cars in the name of national security, and has tariffs on $200 billion in Chinese goods.

Canada's retaliatory tariffs take effect Sunday against American products including Florida orange juice, ketchup and Kentucky bourbon.

Global equities fell on Monday as investors anxious about an escalation of the trade disputes.

President Trump has long threatened to place tariffs on China, arguing that the country steals the intellectual property of tech companies in the USA and as a result should be punished.

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