European Union to impose countertariffs on U.S. products as of Friday

European Union to impose countertariffs on U.S. products as of Friday

European Union to impose countertariffs on U.S. products as of Friday

Most economists say the effect of higher global import tariffs will drive up costs for consumers, offsetting much of the benefit of protecting domestic industries for the country imposing them.

"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 US Build them here!"

Currently, the United States charges just 2.5% on auto imports; this is lower than the EU's 10% and China's 25%, although the latter will lower its tariff to 15% from 1 July.

Mexico has announced it will, in response, impose tariffs on U.S. imports, including pork bellies, apples, grapes, cheeses and flat steel, among other products.

The European Union slapped revenge tariffs on iconic US products including bourbon, jeans and motorcycles on Friday (June 22) in its opening salvo in a trade war with US President Donald Trump.

The US now imposes a 2.5% tariff on imported passenger cars from the European Union and a 25% tariff on imported pick-up trucks. That amounts to almost 2 percent of the workforce for America's auto and auto parts industries. Trump would start July 6 by taxing $34 billion worth of products and later add tariffs on an additional $16 billion in goods. All five countries have announced retaliatory measures. Trump praised Mexico's approach to combating illegal immigration, and even said that Mexico's reliance on the U.S.as an export market was acceptable.

The department approved 42 exclusion requests from seven companies in the United States that import steel products from Japan, China, Germany, Belgium and Sweden. Jobs tied to dealer networks provide more than 350,000 jobs.

European auto manufacturers including BMW and Mercedes Benz have a large presence in the US. If this investigation finds that the "national security" of the United States is compromised by a reliance on imports, than tariffs can be imposed.

Trump has threatened duties on up to $450 billion of imports from China. A 25 percent tariff means that vehicle costs about $5,800 more. "The president has made it very hard for other countries to give him what he wants". "It is a significant financial commitment for most families, often paid for with debt, and I'm shocked that anyone would consider making it more expensive". "And then, the European Union will hopefully act as united again as it has done now". Beijing has vowed to retaliate with its own tariffs on US soybeans and other farm products in a direct shot at US President Donald Trump's supporters in America's heartland.

That might be a relief to Swedish carmaker Volvo, which opened a factory in SC this month. "We're going to fix the problem of protectionism around the world, and we're going to fix it by making it more painful for those countries to do bad practices than to do the right thing, which is to lower the trade barriers and lower their tariffs".

Wirtschaftswoche reports that the comments, made to Macron and reported to the media via several EU and U.S. diplomats, could spark a trade war between the usa and the EU, with Germany's vehicle industry being a heavy source of income to the union.

Related news