Published: Fri, June 22, 2018
Finance | By Jaime Brady

European Union slaps revenge tariffs on USA as trade war erupts

European Union slaps revenge tariffs on USA as trade war erupts

Oxford Economics said the consequences could be much greater if Trump imposed tariffs on cars, which leaders from both American and European vehicle manufacturers have said would lead to net job losses in the US.

And the highest-stakes fight still looms: In two weeks, the United States is to start taxing $34 billion in Chinese goods.

"We have a trade war - and it's an escalating trade war", SEB chief economist Robert Bergqvist told AFP in an interview.

President Donald Trump threatened tariffs on European Union-made cars Friday, saying that he was willing to impose a 20% levy, citing barriers to American exports and the need for incentives to move production to the U.S.

The threat comes after Trump directed the Commerce Department to launch an investigation into whether imports of foreign autos were a risk to US national security and should be subject to tariffs or other trade restrictions.

The biggest exporters of cars to the USA are Canada and Mexico, followed by Japan and Germany.

The EU trade commissioner, Cecilia Malmström, said this week the 28-nation bloc was left with no other choice but to impose tariffs of its own after the "unilateral and unjustified decision of the US".

Canadian Prime Minister Justin Trudeau this week said the integration of the auto industry in the US and Canada means he has "a hard time accepting that any leader might do the kind of damage to his own auto industry that would happen if he were to bring in such a tariff on Canadian auto manufacturers", Reuters reported.

Cristiano Ronaldo's Portugal are not a one-man team - Fernando Santos
Ronaldo scored in the fourth minute of the match to become the highest-scoring European player in worldwide soccer history. For Morocco , a second successive defeat condemned them to an early exit in their first World Cup appearance since 1998.

Charlotte Hornets trade Dwight Howard to Brooklyn Nets
New Hornets general manager Kupchak signed Mozgov to a four-year, $64 million deal in 2016 when both were with the Lakers. The Nets landed Mozgov last summer as a part of their trade for the Los Angeles' Lakers D'Angelo Russell.

More than 210 injured in Osaka-area natural disaster
No irregularities were detected at the Mihama, Takahama and Ohi nuclear plants to the north of Osaka, Kansai Electric Power said. One victim was a 9-year-old girl knocked down by a concrete wall at her elementary school as she walked by.

Economists note that on the whole, the US and European Union tariffs will not immediately cause great damage to either side's economy. Trump on Monday evening ordered up identification of $200 billion in Chinese imports for additional tariffs of 10 per cent - with another $200 billion after that if Beijing retaliates.

The imposition of tariffs has raised the specter of a full-blown trade war, which could be costly to consumers, jobs and the global economy.

Lim said: "This is going to escalate, with the U.S. especially looking at German cars. They do have, though, very strong Immigration Laws", Trump posted on Twitter, a day after a vote on a compromise immigration measure was postponed in the House.

The Trump administration this week ratcheted up its accusations that China's trade and intellectual property practices are threatening U.S. economic interests.

President Trump said the measures against the EU are meant to protect US national security interests, but the Europeans claim it can not be that close allies, many of them North Atlantic Treaty Organisation partners, would endanger USA security. Bejing will respond in kind.

"80% of Mexico's Exports come to the United States".

The commission formally adopted the new tariffs, allowing them to come into effect on June 22. Senators this week grilled Commerce Secretary Wilbur Ross. The department expected 4,500 requests.

"We've never seen anything like this", said Mary Lovely, a Syracuse University economist who studies worldwide trade - at least not since countries tried to wall themselves off from foreign competition during the Great Depression. Therefore, I don't want cars made oversees.

Like this: