Published: Wed, July 04, 2018
Finance | By Cynthia Curry

European Union warns Trump that raised vehicle import tariffs would hurt US

European Union warns Trump that raised vehicle import tariffs would hurt US

The U.S. Chamber of Commerce, the nation's largest business lobbying group and customarily a close ally of Trump's Republican Party, is launching a campaign on Monday to oppose Trump's trade tariff policies, the organization told Reuters.

According to a report in the Financial Times, a letter sent by the European Commission to the US Department of Commerce says the EU could hit $300 billion - the equivalent of well over R4 trillion - of US goods with tariffs, if Trump follows through on his threats to place big taxes on European vehicles being imported in the US.

Canada retaliated with $12.6 billion in tariffs against American-made products after the Trump administration targeted steel and aluminum imports with new tariffs.

Starting Friday, the USA will tax 818 Chinese products, worth $34 billion a year, from the original list.

Meanwhile, the European Union argued that the US's comparably low auto import tariff was countered by higher rates on other vehicles, such as lorries. Their shipments will now be subject to a 25 percent tariff, which will instantly make their crops far costlier in China.

The White House last month announced plans to slap 25 percent tariffs on roughly 1,100 goods imported from China, worth $50 billion a year.

Umtiti reveals difference between Messi at Barcelona, Argentina
The last time these two sides met was in 2009 in an worldwide friendly which Messi and co had won 2-0. Argentina have defeated France in their two World Cup meetings (1930, 1-0; 1978, 2-1).

President Donald Trump cited national security concerns for the previous tariffs. "A potential offset to the blackout of corporate buying is that individual investors have been net buyers of ETFs and mutual funds that invest in US and worldwide stocks in five of the past six weeks despite the trade worries".

"In 2017, US-based European Union companies produced close to 2.9 million automobiles, which accounted for 26% of total United States production", it said, adding that they supported 120,000 USA jobs.

One proposal has been for China and the European Union to launch joint action against the United States at the World Trade Organisation.

Trump has threatened to impose a 20% tariff on the import of cars assembled in the European Union if the bloc fails to withdraw its curbs on Washington.

General Motors (GM) has taken a similar position as the European Commission.On Friday it warned Trump that his tariffs could force it to cut jobs and raise the price of cars, perhaps by thousands of dollars.

But what may temper the blow from punishing tariffs could be a move by the White House to enable Chinese telecom company ZTE Corporation (ZTCOF) to purchase USA tech equipment again as well as Trump's less strict decision when it comes to investments by Chinese companies in US technology companies. Those tariffs are due to take effect July 6.

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