EU Warns US Imposing Car Import Taxes Could Backfire

Andrew Cummings
July 4, 2018

But mounting trade tensions have opened a rift with the president.

The Chamber of Commerce's campaign website,, tracks the impact of retaliatory tariffs on us exports from each state.

The EU warned the Trump administration against imposing tariffs on auto imports on Monday, saying that such tariffs could lead to global retaliation against some United States dollars 300 billion in USA goods, ABC News reports. The impact of potential new U.S. tariffs on imported cars would be aggravated significantly by the likely countermeasures of United States trading partners, as evidenced by the reaction to the USA section 232 tariffs on steel and aluminium. The U.S. has also faced hit back from the European Union. The EU has a 10 per cent levy, compared to 2.5 per cent for cars entering the US. Imports had, it said, not shown a dramatic increase in recent years and largely grown alongside overall expansion of the United States auto market, with increased demand that could not be met by domestic production.

Ross said the American economy had shown no signs of stuttering due to the rising trade barriers, with high capital expenditures, rising capital repatriation and vigorous jobs markets.

Later in the interview, Trump called the European Union "possibly as bad as China, just smaller.It's awful what they did to us".

In 2017 South Africa exported R50.3 billion of automotive components - and Germany was the top export destination for the industry.

Brent crude prices slid on more supply from Saudi Arabia and Russian Federation and that pulled down energy stocks.

CEO Mary Barra has attempted to provide counsel to President Donald Trump, even as his policies have negatively impacted automakers.

ENERGY: Trump has claimed that Saudi Arabia will raise oil production by "maybe up to 2,000,000 barrels" in response to turmoil in Iran and Venezuela.

Trump hasn't responded with a devastating tweet yet, but I'm sure he will eventually. Investors are expecting strong earnings from the tech sector.

But in a submission sent to the US Department of Commerce, the European Union said that such an increase would be to the detriment of the US's own interests. We're also going to complain to the WTO.

GERMAN MIGRANT DEAL: On Monday, Merkel and her rebellious political allies reached a compromise on migration that both sides said addressed their concerns.

CHINA TARIFFS: The U.S. will start imposing a 25 percent tariff on $34 billion worth of Chinese imports on Friday. New orders, exports and confidence fell. The euro weakened to $1.1643 from $1.1695. Australia's S&P/ASX 200 rose 0.5 percent to 6,210.20 after the Reserve Bank of Australia kept its 1.5 percent benchmark interest rate unchanged.

ANZ economists said they will be looking out for comments from the central bank on demand for loans domestically and rising global risks. "We'll see what happens with Brexit", he said.

And the latest building approvals data from the Bureau of Statistics will be out.

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