The U.S. Chamber of Commerce Is Fighting Trump's Tariffs with Facts

Andrew Cummings
July 5, 2018

Stocks on Wall Street were volatile as investors anxious about the mounting trade war between the U.S. and its trading partners. A report submitted by the European Commission to the US Department of Commerce on Friday suggests that protectionist measures would do severe damage to the US economy. The EU, Mexico, Canada, Turkey and India introduced duties on US products in return.

"We believe the resulting impact of tariffs on imported vehicles and vehicle components will ultimately harm USA economic security and weaken our national security", the group wrote, calling the tariffs a "mistake" and adding that imposing them "could very well set a risky precedent that other nations could use to protect their local market from foreign competition".

Now that the United States has imposed a first wave of tariffs, Stefen Legge and Priotr Lukaszuk ponder whether the European Union has become the standard bearer of multilateralism and free trade or whether it will it ultimately follow America's course of action.

In May, Mr. Trump ordered an inquiry into the possibility of imposing tariffs on auto imports. He noted that European carmakers create over half a million jobs in the U.S.

The European Commission reportedly sent a letter to the USA threatening to hit $US300 billion of American goods with tariffs.

Something of this scale would justify the use of the term "trade war" as this would, in all probability, reduce global real trade as a share of GDP.

The chamber's three million members applauded Trump's business tax cuts in December, but the organization has distanced itself from the president since his call for new tariffs against China, Canada, Mexico, and the European Union. Benchmark U.S. crude added 65 cents to $74.58 a barrel in electronic trading on the New York Mercantile Exchange.

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. The Russell 2000 index of smaller-company stocks rose 0.7 percent to 1,655.09. Investors are expecting strong earnings from the tech sector. The 10-page submission was sent to the US Department of Commerce on Friday and published on Monday, according to CNN Money.

However, another motorcycle manufacturer is also following Harley's lead. Steel and aluminum products, as well as automobiles, are among Michigan's hardest hit.

Factory activity in the eurozone came in slightly less than expected at 54.9 over the second quarter.

Oil prices fell, reversing course from last week, as supplies from Saudi Arabia and Russian Federation rose while economic growth stumbled in Asia. The Office of the U.S. Trade Representative concluded after an investigation that China's tactics range from requiring U.S. and other foreign companies to hand over technology in return for access to the vast Chinese market to outright cyber-theft.

Coming up today, the Reserve Bank is expected to keep official interest rates on hold for yet another month with the post-meeting statement to be carefully scrutinised. "We'll see what happens with Brexit", he said.

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

Other reports by iNewsToday