Economy

Trump’s automotive tariffs could cost the USA $294 billion

Trump’s automotive tariffs could cost the USA $294 billion”

The European Union is slamming the Trump administration for considering tariffs on auto imports, saying they could lead to global retaliation against some $300 billion in us goods.

Europe is "possibly as bad as China" on trade, U.S. President Donald Trump said in an interview broadcast Sunday, with trade wars emerging against both the Asian giant as well as longtime allies in Europe and Canada.

Oil prices also fell after US President Donald Trump put pressure on Saudi Arabia to increase oil production.

Several targets of Mr. Trump's tariffs on steel and aluminum have already imposed countermeasures, including Canada and the European Union.

The commission also underlined that European vehicle companies were important contributors to the USA economy and "well established" there. Mexico is adding duties to pork imports.

Trump has said that allies such as the European Union are "as bad as China" on trade.

"I see us running into a full collision course in a few days", said Ashley Craig, a trade lawyer at Venable LLP. The EU had calculated that a 25% tariff would have an initial US$13-14 billion negative impact on U.S. gross domestic product with no improvement to its current account balance.

"We'll spare no effort, be it at the technical or political level, to prevent this from happening", said a spokesman for the European Commission, the EU agency that handles trade.

Canada and the USA are among the world's largest trading partners, with an estimated $673.9 billion in goods and services exchanged in 2017, with the US scoring a small surplus ($8.4 billion), according to USA government data.

In May, the White House had said it would announce curbs on Chinese investment in US technology by June 30 and impose those restrictions shortly thereafter.

A Russian official told the WTO meeting that the issue of USA investigations had been raised over the past year in different WTO meetings, only to see things change for the worse.

Tariffs our government has placed on American goods are now in effect, in response to levies the Trump administration has placed on Canadian products.

The EU has been engaged in a dispute with the United States over the steel and aluminium tariffs, which were introduced on June 1.

"They send a Mercedes in, we can't send our cars in".

China is expected to impose a new 25 per cent tax on soybeans in July.

The EU said the US auto industry is in good health, but any restrictive duties could undermine that trend. There are also fears that a trade standoff between China and the United States could harm manufacturers who rely on the world's two largest economies for growth.



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