German automakers offer to end EU's tariff's on United States autos

An investor checks stock information on a mobile phone at a brokerage house in Shanghai China

An investor checks stock information on a mobile phone at a brokerage house in Shanghai China

They range from agricultural produce such as rice and orange juice to jeans, whiskey, motorbikes and various steel products.

The European Union is enforcing tariffs on $3.4 billion in US products as of Friday in retaliation to duties the Trump administration has put on European steel and aluminum.

"We do not want to be in this position", EU Trade Commissioner Cecilia Malmstrom said in a statement, adding that the "unilateral and unjustified" United States decision had left the EU with no choice. "China trade war. In terms of how we manage and adapt, this is something all our high-level managers are making various plans on", Chairman Terry Gou said at the company's annual general meeting. The US has imposed tariffs on Canada, Mexico and £25bn in Chinese goods. Europeans claim it is simply protectionism and breaks global trade rules.

Analyst Bergqvist argued that his "main concern" over a trade war was the impact on stock markets - and the subsequent knock-on effect for the world economy.

The move confirms a tit-for-tat dispute that could escalate into a full trade war, particularly if US President Donald Trump carries out his threat to penalise European cars.

"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 also locked in a tariff showdown with China, after President Trump said he would use the import taxes to try to shift the balance of trade between the world's top two economies. "The abusing the tariff methods and starting trade wars all around the world".

Mexico has already announced its own tariffs on USA goods, and Canada's tariffs on almost $13 billion of United States products are set to take effect next month.

Mr Trump ran for the presidency on a vow to topple seven decades of American policy that had favoured ever-freer trade among nations. China, India and Turkey have hit back with their own tariffs on United States imports.

Canada has announced that it will impose retaliatory tariffs on C$16.6 billion (S$17 billion) worth of USA exports from July 1. The EU implemented the tariffs a week earlier than expected, "a signal that the EU is striking back and taking this seriously", said economist Holger Schmieding at Berenberg Bank in London.

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