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US President Donald Trump's threat to hit car imports with punitive tariffs may trigger worldwide retaliation for $ 300 billion of US goods, Brussels warned
. The submission by the Financial Times to the US Treasury Department gave a detailed answer to Trump's threat to impose punitive tariffs on imported vehicles, as European capitals are increasingly convinced that unpredictable US president will intervene soon.
Sunday, said that the EU was "as bad" as China when it comes to how European countries have traded with the United States. In an interview with Fox News, he rejected suggestions that his attacks on the EU were counter-productive and that he should instead strengthen relations with European countries to tackle the problem. Chinese commercial together.
"The European Union is perhaps as bad as it is smaller … it's what they do to us," said Trump, citing "the automotive situation".
Brussels said that a US investigation into whether foreign cars and coins represented a risk to national security could plunge the global economy into a commercial war, harming the economy. Employment in the US automotive sector, which accounts for more than four million jobs. The exasperation of the EU
Sign of the EU's exasperation at the confrontational trade policy of Mr Trump, which has already fueled tensions over steel and the aluminum, the document says that this decision "could result in a new disregard of international law". WE. He said the imposition of car rates would not be accepted by the international community and would "further damage the reputation" of the United States.
Trump said in a tweet last month that European automakers were subject to punitive rights. General Motors was Friday the last automaker to warn of Trump's threatened car tariffs, saying it would raise the price of its vehicles by several thousand dollars, undermine its competitiveness and lead to losses in sales. 39, jobs in the United States. BMW, the German automaker that exports 70 percent of the vehicles from its largest plant in South Carolina, has also warned that it could reduce investment and jobs if fares are taxed.
This week, global automakers warned tariffs on car imports would raise prices for imported vehicles up to $ 6,000 per car and prices for locally manufactured cars.
EU officials pointed out that no decision had yet been taken on the liate. But the document warned that the EU and other major economies would be "likely" to apply countermeasures to "a significant volume of trade", with up to $ 294 billion – accounting for 19 percent of US merchandise exports in 2017 – potentially in the line of fire. According to the document, the measures could apply "to all sectors of the US economy".
The $ 300 billion figure identified by the EU is roughly equivalent to the value of US imports of cars and parts. The EU or other countries would only fight back against a portion of US tariffs, an approach that Brussels used last month to meet US tariffs on the metals sector with tariffs on products including Harley-Davidson motorcycles. EU trade representatives said various options were being explored.
The US Department of Commerce announced in May that it was initiating a so-called "Section 232" investigation on passenger vehicles and their parts to determine whether imports were weakening the US industry. point where they threatened the country's "internal economy", including the development of "advanced technologies" and the preservation of a skilled workforce.
US authorities indicated at the time that the United States was planning to introduce tariffs of 25%, while Trump's tweet mentioned 20%
. up to $ 6,000 per car and raise the prices of locally manufactured cars.
'Own goal'
The Commission's paper indicated that, according to its "internal analysis" and other expert studies, tariffs would be a "clean goal" for the US economy even before Other economies are fighting back. The interdependence of the automotive industry and its high degree of regional specialization mean that the imposition of 25% additional tariffs on imports would result in a fall in US gross domestic product. order of 13 to 14 billion dollars, according to the document.
The paper, submitted by the EU Representation in Washington, also points out that EU-owned car companies account for more than a quarter of US auto production, with factories across the country, including South Carolina, Alabama and Mississippi. Tennessee "- all states strongly Republicans – and that the majority of this production was destined for export.
" With the fragmentation of markets, US costs would increase, US auto exports would suffer, US consumers would pay higher prices and jobs the EU also firmly rejected Trump's use of national security arguments to justify trade restrictive measures, saying that it has no basis fact and risk. "This development hurts commerce, growth, and employment in the United States and abroad, weakens ties with friends and allies, and distracts from the shared strategic challenges that we face. are authentically The document, submitted to US authorities on Friday, marks the last stage of the EU campaign to get Mr Trump to retire from the board before it is too late.
Jean-Claude Juncker, President of the European Commission, will visit Washington this month for a meeting with Mr Trump, and EU officials will take part in a public hearing organized by the Department of Commerce on July 19th. 19659010] EU leaders at a summit in Brussels last week warned that the EU would respond to all US actions "of a clear protectionist agenda".
The White House has not responded to a request for comment.
Finan cial Times Limited 2018
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