Donald trump has threatened to extend the mounting trade dispute between the US and EU by imposing tariffs on European cars, after Brussels made good on his threats of retaliatory duties on U.S. products, including Bourbon whiskey, Levi’s and Harley-Davidson motorcycles.
The rate increase in tit-for-tat exchange of tariffs on imports, threatening to cause a global trade war, the US President wrote in response to the EU tariffs, which came into force late on Thursday evening: “if these tariffs and barriers are not only being destroyed and eliminated, we will be placing a 20% tariff on all its vehicles in the US are building them here!”
Donald J. Trump
On the basis of tariffs and trade barriers has been put on US and his great companies and the staff of the European Union if the tariffs and barriers are not only being destroyed and eliminated, we will be placing a 20% tariff on all its vehicles in the US are building them here!
22 Jun 2018
A new threat trump comes after the EU imposed duties on some consumer goods in response to the steel and aluminium tariffs from the White house that can increase the value of goods £200 million a year in the UK alone.
Should trump to collect, it can have devastating consequences on jobs and economic growth on both sides of the Atlantic. The leaders of the American and European automobile manufacturers said earlier that such measures will lead to the loss of jobs in the United States.
USA is the largest market for EU automotive exports, which is 25% of €48bn (£42bn) total in 2016, when Germany accounted for more than half of all cars in the EU exports and the UK the second largest share at 13%.
Exports of cars from EU
Car imports in the EU
Shares in US and European automakers fell, including Ford, GM, Fiat, BMW and Daimler.
The U.S. opened a new front in the trade war Friday, telling the world trade organization, that the appeal of the decision of the trading disputes can be vetoed if they took more than the allowed 90 days.
The U.S. Ambassador, Dennis Shea, threatened to undermine one of the key elements of trade remedy rights to 23-year-old WTO, the compulsory settlement of disputes, which is widely regarded as the main bulwark against protectionism.
Fares from Brussels imposed on consumer goods – for manufacturers in Republican States where trump draws most of his support – was introduced in 11 PM (British summer time) Thursday on American goods worth up to €2.8 billion (£2.5 billion).
The White house refused to release its traditional allies around the world from the tariffs on steel and aluminum, which trump says is needed to protect us jobs and industry. The President is also threatening China with tariffs worth up to $ 200 billion for allegedly “unfair” trade practices.
EU Commissioner for trade Cecilia Malmstrom said this week the 28-nation bloc was left with no other choice but to impose tariffs on its own after the “unilateral and unjustified decision by the United States.”
Brussels has developed a list of products in March, when trump first put forward the idea of a 25% duty on steel and 10% aluminum.
Although American goods in the UK will not increase in the price of goods exported from the US to Europe Friday-starting at be charged rates.
Customs agents at the internal EU market with a population of 500 million people will to impose duties, prices for us to order products in supermarkets and factories.
EU tax on imports to the UK are charged on tax and customs, with some of these duties stay in the country, but the price for importers, for example, wholesale firms and supermarkets will continue to grow and are likely to be passed on to consumers.
Richard lim, chief Executive officer of consulting Retail economy, estimated tariffs can add £200m to the cost of consumer goods in the UK. In 2017, consumers in the UK spent about £406bn for retail purchase.
“Despite the immediate impact on retailers in the UK might look relatively modest, are worth paying close attention to this debate, because this is the future unpredictable, fast moving and can quickly absorb other, seemingly unrelated areas of Commerce,” he said.
Most economists say the global consequence of high import tariffs will lead to higher costs for consumers, which largely compensates the protection for the country imposing the domestic enterprises.
Analysts Oxford Economics for commercial said the consequences for the European economy can be included in the short term, as the affected imports only about 1% of all goods imported to the EU from the US, although it warned of duties on cars will have a greater negative impact. The EU will impose an extra €3.6 billion in tariffs if the dispute is valid for three years.
European consumers will be able to find alternatives, said the Vice-President of the European Commission on issues of trade, Jyrki Katainen. “If we have chosen products such as Harley Davidson, peanut butter and Bourbon, this is because there are alternatives on the market. We don’t want to do anything that could harm consumers,” he said. “Moreover, these products have a strong symbolic political influence.”
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What products we will beat the rates?
- Motorcycles (e.g. Harley-Davidson)
- Peanut butter
- Orange juice
- Jeans (e.g. Levi’s)
- Cigar, cigarette and tobacco
- Bourbon Whiskey
- Makeup (such as Mac, Estee Lauder, clinics)
- Burning appliances
- Yacht (for example, sea ray cruisers)
- Playing cards
- Bed linen
- Knives and forks