Steep US tariffs on more than $30 billion in Chinese imports are due to take effect Friday as retribution for Beijing's alleged theft of US intellectual property.
In a submission to the USA authorities, the European Commission warned: "Economic analysis confirms that an increased tariff on these products (cars and vehicle parts) will be harmful first and foremost for the U.S. economy".
As well as the tariff threats, the European Commission is also believed to have warned Trump that his behaviour could "result in yet another disregard of global law" by the USA, as well as saying that any auto tariffs would "damage further the reputation" of the country. The top five countries receiving S.C. exports, according to the U.S. Census Bureau, are China, Canada, Germany, Mexico and the United Kingdom.
EU officials also said around 60-percent of USA -made cars of European brands are exported into third countries, which benefits the US economy.
That came on top of the tariffs on Chinese steel and aluminum that went into effect in late March - measures that prompted Beijing to slap punitive duties on 128 US goods, including pork, wine and certain pipes.
Trump has said that allies such as the European Union are "as bad as China" on trade.
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Senator Lindsey Graham said everything he blasted Obama for doing wrong in the Middle East Trump may do be doing even worse. Kremlin aide Yuri Ushakov had told reporters that the venue of the summit was convenient for both sides.
"The president is committed to making sure we have good deals", she said.
The number of exports that could be hit by retaliatory tariffs among the 10 most vulnerable states ranges from $1.7 billion in Pennsylvania to $6.2 billion in Washington. It calculated that a 25% tariff would slash an initial $13-14 billion off U.S. gross domestic product, with no predicted improvements to its own incomes.
A detailed study by the U.S. The Peterson Institute for International Economics calculates that 85 percent of the Chinese products to be hit by the initial Trump tariffs are machinery and components used in finished goods made in the United States. Harley Davidson announced it was moving some manufacturing overseas to avoid European Union motorcycle tariffs brought in as a response to USA duties on steel and aluminium imports.
The EU said the US auto industry is in good health, but any restrictive duties could undermine that trend.
The Commerce Department is investigating tariffs on cars and auto parts from the European Union and other trading partners on the grounds of national security under orders from US President Donald Trump. The U.S. has higher tariffs on trucks and other products, she said. Consider American soybean farmers, who send about 60 percent of their exports to China.
They are urging their United States supporters to write to their elected officials, and have provided a pre-written letter - you can view that here in an online version.
The Australian dollar slumped almost 1 per cent overnight to a low of 73.1 as the greenback rose and amid ongoing trade tension.