Trump threatens 20 per cent tariff on European Union cars

Trade war

Most world economies including India have been imposing tariffs on the US in retaliation

Donald Trump has threatened a 20% tariff on all European cars if the EU does not remove trade barriers introduced on Friday.

US -made bourbon whiskey is now under a 25 percent tariff in the European Union, in retaliation for the Trump administration's tariffs on steel and aluminum.

USA president Donald Trump threatens 20 per cent tariffs on European Union cars.

In fact, the president responded to the E.U.'s duties Friday morning by threatening to impose a 20 percent tariff on all foreign-made cars.

Daimler earlier this week warned that it expects lower sales of Mercedes-Benz cars due to a tax on the import of USA vehicles into China.

Malmström added that if the USA removes its tariffs, the European taxes would also be lifted.

And on Friday, Trump threatened to slap tariffs of 20pc on European Union auto imports, sending shares in Fiat Chrysler, Daimler and BMW sharply lower. The Commerce Department plans to hold two days of public comments in July on its investigation of auto imports.

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

This latest tit-for-tat step marks a further stage of escalation in the mounting trade war between the USA, its closest allies and China since Mr Trump ignited a trade conflict with metals levies.

Economists noted that the amount of money involved with India's levies dwarfed in comparison with that of China - U.S. -India trade was $126 billion past year, while U.S. Such a move could raise prices for American consumers and businesses and hit global supply chains for industries like carmakers and electronics. China's tactics range from forcing American companies to hand over technology in exchange for access to the Chinese market to outright cyber-theft. Experts say that the Trump administration has been focused on poultry and pork imports as well as India's imposition of price controls on medical devices. Picture taken May 29, 2018. "Build them here!" Trump tweeted.

"We support free and fair trade and hope for a quick resolution to the issue".

There is evidence suggesting that, for decades, imports from overseas have eroded our domestic auto industry.

"The upshot: By exporting more finished vehicles from the United States than it imports to the United States, BMW may be helping to lower America's trade deficit".

Automotive stocks fell on the news. He is also targeting European Union auto imports with a United States probe now underway. He reportedly told French President Emmanuel Macron he wanted to halt Mercedes-Benz models from driving down Fifth Avenue in New York City. The White House has invoked the same rationale in assessing tariffs earlier this month on steel and aluminum imports.

Republican lawmakers and business groups have opposed higher auto tariffs.

The Auto Alliance has said it was "confident that vehicle imports do not pose a national security risk".

The E.U.'s tariffs are not the first retaliation in the escalating global trade war started by the Trump administration: Mexico and China have already launched retaliatory tariffs of their own, while Canada and Japan are soon likely to follow suit.

In 2017, the U.S. accounted for about 15% of worldwide Mercedes-Benz and BMW brand sales.

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