Following the coming into force of retaliatory tariffs by the European Union against American products last Friday on a range of American products imported into the bloc including bourbon whiskey, Levi’s jeans and Harley-Davidson motorbikes, the new threat of fresh tariffs on European cars was issued by United States President Donald Trump which has the potential to widen the trade dispute between the two trading parties.
The threat was issued by Trump who tweeted: “If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” referring to the tariffs imposed by the EU.
The EU tariffs on American products was against the tariffs inmposed by Trump on import on steel and aluminum which was announced in March but granted temporary exclusion to the EU, Canada and Mexico. However, that temporary relief was revoked from June 1 and the US was unable to strike favourable trade deals with these largest and traditional trade partners.
It is estimated that the price of goods that have been tariffed by the EU would increase substantially within the EU.
There would be significant negative impact on jobs and economic growth on both sides of the Atlantic if Trump follows through on his threat of imposing tariffs on European cars. Such tariffs would lead to net job losses in the US, leaders from American and European car manufacturers have earlier said.
The US accounted for sale of about 25% of the €48bn total revenues generated from sale of European cars in 2016 and the US is the largest market for EU car mamkers. Among them, a little more than half of the total export to the US was accounted for by Germany. The second largest share is that of the UK with 13% share.
Shares of car makers in both the US and Europe dropped following the Trump tweet and included companies like Ford, General Motors, Fiat, BMW and Daimler.
Meanwhile., the US has told the World Trade Organisation on Friday that it could veto the appeals rulings in trade disputes is the outcome was not made available within the allowed 90 days.
It should be mentioned that the EU tariff list has been such drawn up that it targets the Republican states where Trump draws much of his support. The total worth of the good tariffed was estimated to be around €2.8bn.
The 28-nation economic bloc had no other option but to go ahead with the imposition of the tariffs following the “unilateral and unjustified decision of the US”, the EU trade commissioner, Cecilia Malmström, said earlier this week
(Source:www.theguardian.com)
The threat was issued by Trump who tweeted: “If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” referring to the tariffs imposed by the EU.
The EU tariffs on American products was against the tariffs inmposed by Trump on import on steel and aluminum which was announced in March but granted temporary exclusion to the EU, Canada and Mexico. However, that temporary relief was revoked from June 1 and the US was unable to strike favourable trade deals with these largest and traditional trade partners.
It is estimated that the price of goods that have been tariffed by the EU would increase substantially within the EU.
There would be significant negative impact on jobs and economic growth on both sides of the Atlantic if Trump follows through on his threat of imposing tariffs on European cars. Such tariffs would lead to net job losses in the US, leaders from American and European car manufacturers have earlier said.
The US accounted for sale of about 25% of the €48bn total revenues generated from sale of European cars in 2016 and the US is the largest market for EU car mamkers. Among them, a little more than half of the total export to the US was accounted for by Germany. The second largest share is that of the UK with 13% share.
Shares of car makers in both the US and Europe dropped following the Trump tweet and included companies like Ford, General Motors, Fiat, BMW and Daimler.
Meanwhile., the US has told the World Trade Organisation on Friday that it could veto the appeals rulings in trade disputes is the outcome was not made available within the allowed 90 days.
It should be mentioned that the EU tariff list has been such drawn up that it targets the Republican states where Trump draws much of his support. The total worth of the good tariffed was estimated to be around €2.8bn.
The 28-nation economic bloc had no other option but to go ahead with the imposition of the tariffs following the “unilateral and unjustified decision of the US”, the EU trade commissioner, Cecilia Malmström, said earlier this week
(Source:www.theguardian.com)
