Published: Sun, June 24, 2018
Business | By Tara Barton

Trump threatens 20 per cent tariff of European cars

Trump threatens 20 per cent tariff of European cars

More than $3 billion worth of USA goods - from bourbon and corn to Harley Davidson motorcycles - are now under a 25 percent tariff in the European Union, in retaliation for the Trump administration's tariffs that hit the EU, Mexico and Canada earlier this month.

He added: "Our response must be clear but measured". The US has pledged to impose 25 per cent tariffs on $US34 billion in Chinese goods on July 6, and China vowed to retaliate in the same amount of US imports.

European Commissioner for Trade Cecilia Malmström on Thursday, June 21, stressed the EU's readiness to resolve the trade conflict.

Earlier, Trump had said the "unfair" foreign trade practices were not merely an "economic disaster" but a "security disaster" and by imposing tariffs he was defending America's national security.

The Commerce Department said Wednesday it has exempted some steel products from Japan and four other countries from USA tariffs of 25 percent.

Germany's Daimler (DDAIF) and Volkswagen (VLKAY) initially fell about 1% in Friday's stock market trading in reaction to Trump's tweet.

The European Union charges a 10 percent tariff on auto imports from the United States.

Trump's tweet came after the Trump administration last month initiated a so-called Section 232 investigation into the national security implications of automobile imports, which has provoked widespread opposition from USA lawmakers, business groups and major trading partners. The deadline for completing the investigation is February, 2019, but United States commerce secretary Wilbur Ross said on Thursday that the department aims to wrap up the probe much earlier, by late July or August.

There is evidence suggesting that, for decades, imports from overseas have eroded our domestic auto industry. While the results of that investigation are still weeks away, Trump raised the specter of tariffs on Twitter.

Wimbledon champion Garbine Muguruza crumbles against 'shaking' Barbora Strycova in Birmingham
The top seed got back into the match by breaking to lead 4-2 in the second set but lost the next four games. I just like to play slice and serve- and-volley. "I'm going to practice more to get ready for Wimbledon".

"So, they're basically saying, 'We are going to sell you millions of cars".

John Ferguson, director of global forecasting at the Economist Intelligence Unit agreed, as he sounded a warning about the USA trade disputes rumbling on the European Union and Chinese fronts.

The US Department of Commerce last month started investigating whether imports of cars and light trucks hurt the US' ability to defend itself by eroding its auto industry. "How they'll take it, we'll have to wait and see".

Brussels imposed the raft of duties on U.S. products worth 2.8 billion euros ($3.3 billion) in a tit-for-tat response to Trump s decision to slap stiff tariffs on European steel and aluminium exports.

It stated that the imposition of tariffs on USA auto exports to China, the major export market for its U.S. plants, was the "decisive factor" in the profit downgrade. It's reported that Trump said the tax would be upheld until Fifth Avenue was devoid of Mercedes models.

The EU tariffs came into force just a week after China accused the United States of starting a trade war.

While it was not the central item on the agenda, trade war and its dangers were the subject of comment and warnings at the annual meeting of central bankers convened by the European Central Bank (ECB) in Sintra, Portugal, this week.

"No, because the United States is both an important export market and a strong production base for us", Mattes said.

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