Published: Sun, June 24, 2018
Finance | By Claude Patterson

EU will respond to any new US auto tariffs, says official

EU will respond to any new US auto tariffs, says official

"Build them here!" Trump wrote on Twitter.

That calculation assumes no countries would be exempted from US vehicle tariffs, including our trading partners North American Free Trade Agreement partners Canada and Mexico.

The President's tweet caused a tectonic shift, cratering the European Auto Stocks Index, and causing shares of USA automakers Ford Motor Co and General Motors Co to rapidly fall, and then rebound, Reuters noted.

The move by the European Commission is in response to the Trump administration's decision in March to introduce tariffs of 25% on steel and 10% on aluminium imported into the US.

It's the latest in a string of outbursts by Trump in his frustration at trade tarriffs, having expressed disappointment previously at the disparity between European vehicle sales in the U.S., and USA auto sales in the EU.

The European Union says it will continue a tit-for-tat escalation in its trade dispute with the USA while countering President Donald Trump's assertion that the being treated unfairly by the 28-nation bloc.

It accused the United States of "extreme pressure and blackmailing" and vowed to retaliate after Trump on Monday threatened to slap a 10 percent tariff on $200 billion of Chinese goods in addition to the import duties previously announced on $50 billion in goods. Instead, the EU's refusal to open up new trading partnerships with the eastern superpowers and thereby creating a means through which to leverage the USA, has led to Donald Trump winning the trade war with Europe even in its earliest days.

"The abusing the tariff methods and starting trade wars all around the world". There's support in the administration and from German carmakers for such an idea, but no agreement has been reached yet. The Commerce Department plans to hold two days of public comments in July on its investigation of auto imports.

While Commerce Secretary Wilbur Ross defended the tariffs at a Senate Finance Committee hearing Wednesday as a necessary action to protect USA manufacturers that has already brought about the reopening of steel plants, senators criticised the duties as the wrong approach that draw harmful retaliation, hurt the American economy and businesses with higher costs.

In the years before he became president of the United States, Donald Trump owned luxury German cars. The probe is examining auto imports from all countries, not just from Europe.

"No, because the United States is both an important export market and a strong production base for us", Mattes said. "It's a classic case of 'ready, fire, aim, ' and it will only lead to litigation in the USA and a loss at the WTO when we are inevitably taken there".

Volkswagen AG, Daimler AG and BMW AG each fell in Frankfurt. And Fiat Chrysler Automobiles NV.

U.S. President Donald Trump speaks as he sits between U.S. Secretary of State Mike Pompeo and Secretary of Defense James Mattis during a cabinet meeting at the White House in Washington, U.S. June 21, 2018. He pointed to Daimler's decision on Thursday to slash its profit outlook as an early example. A group representing major United States and foreign automakers has said it was "confident that vehicle imports do not pose a national security risk".

Like this: