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Auto Tariffs Threaten to Ignite Authentic Economic 'Trade War'

05 Juillet 2018

Chamber of Commerce found that tariffs imposed on China, the European Union, Mexico and Canada would threaten $3 billion in S.C. exports, including passenger vehicles, steel products and iron products.

European Commission spokesman Margaritis Schinas said the US investigation into the possibility of auto tariffs "lacks legitimacy, factual basis and violates worldwide trade rules", just like last month's USA tariffs on steel and aluminum imports.

Last month, U.S. President Donald Trump initiated a Department of Commerce investigation to determine the effect imports of vehicles and automotive parts have had on national security.

The U.S. Chamber of Commerce has launched a lobbying campaign criticizing President Donald Trump's tariffs on global trade. The top five countries receiving S.C. exports, according to the U.S. Census Bureau, are China, Canada, Germany, Mexico and the United Kingdom. "Retaliatory tariffs imposed by other countries on USA exports will make American-made goods more expensive, resulting in lost sales and ultimately lost jobs here at home".

According to the organization, half of all USA manufacturing jobs depend on exports, and 1 in 3 acres on US farms produce crops for the worldwide market. The EU and the USA industry specialise in largely different market segments and over the last 5 years imports from the EU have been stable.

The US has complained about Chinese policies that Washington said either forced companies to relinquish key technology or allowed China to steal it outright.

The EU has been engaged in a dispute with the U.S. over the steel and aluminium tariffs, which were introduced on June 1.

Officials in Brussels stressed that European car-makers account for up to 26-percent of USA automotive output. "They treat us very unfairly", Trump said qualifying his remarks.

Observers of worldwide politics and finance would be quite surprised if the current war of words between the United States and China does not end up in a trade war.

"At some point, this tariff impact will be felt by customers", the company said in a filing with the US Commerce Department.

The EU letter suggested new tariffs could trigger a loss of $14 billion to the USA economy.

For example, the Chamber said Texas could see $3.9 billion worth of exports targeted by retaliatory tariffs; Tennessee, $1.4 billion; and SC, $3 billion.

United States tariffs on $US34 billion ($46.3 billion) worth of Chinese goods come into effect on Friday with a big risk of more tit for tat tariffs from China.

Sen. Jeff Flake (R-AZ) called out President Donald Trump for a claim he made about the European Union trade policies during a Sunday morning interview on Fox News. By disrupting supply chains, eroding business confidence and heightening uncertainty, a trade war, they say, could "push the economy toward full-blown recession" and jeopardize America's economic expansion - the second-longest on record.

Auto Tariffs Threaten to Ignite Authentic Economic 'Trade War'