European Union warns President Trump: Auto tariffs could lead to $300 billion retaliation

European Union warns President Trump: Auto tariffs could lead to $300 billion retaliation

The European Union today slammed the Trump administration for considering tariffs on auto imports, saying they could lead to global retaliation against some $300 billion in usa goods amid signs of a brewing trade war. European Commission spokesman Margaritis Schinas said the USA investigation into the possibility of auto tariffs "lacks legitimacy, factual basis and violates global trade rules", like last month's US tariffs on steel and aluminum imports.

The US has imposed tariffs on European steel and aluminium imports and is conducting another national security study that could lead to tariffs on autos and auto parts.

The fact that American vehicle manufacturers are urging President Trump not to tax (impose tariffs) USA consumers any further is an indication of the complexity of trade and why tariffs are a 19th century policy tool that doesn't work in the 21st century world of long and involved supply chains. The EU, Mexico, Canada, Turkey and India introduced duties on US products in return. "Retaliatory tariffs imposed by other countries on US exports will make American-made goods more expensive, resulting in lost sales and ultimately lost jobs here at home".

In May, his administration had initiated an inquiry to ascertain if the automobile imports were a national security threat. That figure would account for 19 percent of USA goods sold in the European Union in 2017.

"It's not positive. We have to work something out", Rutte said.

While he has threatened auto tariffs, Trump has not yet followed through on them. "There is no vehicle in the United States, whether from Toyota, GM, Ford, FCA, Daimler or Hyundai, that is sole-sourced from exclusively USA parts and components".

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After that, the vehicle came good, but we just ran out of laps". "I think the vehicle has been quite good today", he said. It was tougher than perhaps it looked but I just needed to be on top of my tyres.

The European Union and Canada have also threatened to impose tariffs on billions of dollars worth of USA products. The EU has retaliated against those tariffs with measures of its own, which hit around 2.8 billion euros ($3.26 billion) worth of American-made products. The US has higher tariffs on trucks and other products, she said.

Exports threatened by new tariffs include about $842.5 million worth to China, $292 million to Mexico, $88 million to the European Union and $1.1 million to Canada, the study says. "They firmly believe that free trade is a powerful engine for global economic growth".

Murphy noted that additional retaliatory tariffs from Mexico and China would come into effect later in the week.

EU countries approved a raft of tariffs on Thursday (14 June) targeting USA goods including whiskey and motorcycles in retaliation against painful duties imposed by President Donald Trump on European metals.

"The penalties we could incur from tariffs and increased costs will be detrimental to the future industrial strength and readiness of manufacturing operations in the United States, and could lead to negative consequences for our company and USA economic security".

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