Monday, 19 November, 2018

European Union warns Trump's auto tariffs threaten $300 billion of United States exports

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Pablo Mccormick | 02 July, 2018, 18:09

This is based on a letter, reported by the Financial Times, from the European Commission to the U.S. Commerce Department.

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.

The EU has warned Washington that a threat to slap Europe with major auto tariffs could inflict serious damage to the United States economy and would prompt strong retaliation. The U.S. has also faced hit back from the European Union.

He did, however, double down on Sunday, saying in an interview with Fox News that: "The European Union is possibly as bad as China, just smaller.It is awful what they do to us", before mentioning the "car situation".

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The admonishment, written in a letter to US authorities dated Friday, came as US President Donald Trump said Europe is "possibly as bad as China" on trade in one of his biggest provocations to his country's longtime transatlantic allies.

At the weekend Moog sent out an appeal to its mailing list appealing for action to try and reverse the USA administration's trade tariff on imports of electrical components.

The president specifically cited taxes on vehicle imports and exports, as well as how they treat American farm products.

Trump has singled out the Europeans as a problem as great to the United States on trade as China and laid out threats to fight the EU with a 20 percent duty on EU auto imports, a particular source of his scorn.

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As well as the tariff threats, the European Commission is also believed to have warned Trump that his behaviour could "result in yet another disregard of global law" by the United States, as well as saying that any auto tariffs would "damage further the reputation" of the country. The EU, Mexico, Canada, Turkey and India introduced duties on US products in return.

This was the equivalent to 19 percent of US total exports in 2017, the submission added.

Speaking to host Maria Bartiromo on Sunday Morning Futures, Trump said this when asked if he'd consider working with US allies to combat China's trade policies: "The European Union is possibly as bad as China, just smaller".

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