Published: Fri, June 22, 2018
Money | By Ethel Goodwin

European Union to impose duties on USA imports on Friday after Trump tariffs

European Union to impose duties on USA imports on Friday after Trump tariffs

In an interview with Business Insider Germany last week, Bernhard Mattes, the president of German Association of the Automotive Industry (VDA), said that tariffs would not only hurt European automakers but the United States economy as well.

The total amount of U.S. goods exported to China amounted to only US$130 billion (S$177 billion) past year, meaning that Mr Trump's potential tariffs on US$250 billion or more of Chinese imports can not be matched, at least directly.

He charged that a succession of poorly negotiated accords - including the North American Free Trade Agreement and the pact that admitted China into the World Trade Organization - put American manufacturers at an unfair disadvantage and destroyed millions of USA factory jobs.

President Trump is threatening to impose a 20 percent tariff on all auto imports from Europe, ahead of results from an investigation initiated last month by his own Commerce Department.

On Thursday, Indian imposed tariffs on 29 U.S. goods worth $ 238 million as a countermeasure.

China holds the capacity to become the future technological hub of the world - and USA companies have to embrace this fact or lose to China's biggest technology firms.

Cecilia Malmstrom, the EU's trade commissioner, acknowledged that the European Union had targeted some iconic American imports for tariffs, like Harley-Davidson motorcycles and bourbon, to "make noise" and put pressure on US leaders.

India had notified the World Trade Organization on June 14 of its decision to increase tariffs on more than two dozen goods from the United States.

His threat - which if carried out would represent a serious escalation of the burgeoning trade war - comes hours after new European Union tariffs on goods imported from the United States came into force. China, India and Turkey have hit back with their own tariffs on U.S. imports.

On May 31, the White House announced that it would be ending the exemptions at the end of that day. The potential trade action would affect more than $200 billion in US imports, PIIE said.

"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.

The new tariffs target a wide range of American products, but the E.U.'s list includes a number of products chosen specifically to exact a political price from Trump and his supporters. Trump has threatened to impose new taxes on European and other imported cars - an idea that caught many by surprise, because domestic automakers GM and Ford have been thriving, and foreign companies such as BMW, Toyota and Honda now have large plants in the U.S.

The Chinese have said they will respond in kind.

However, China accused the United States of an act of "extreme pressure and blackmail" and said it would respond with "strong countermeasures".

"80% of Mexico's Exports come to the United States". It expects to employ 2,000 people initially, eventually bringing the workforce up to 4,000, according to its website.

"Changes in trade policy could cause us to have to question the outlook", Federal Reserve Chairman Jerome Powell said during a panel discussion at a European Central Bank conference in Sintra, Portugal. Therefore, I don't want cars made oversees.

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