Published: Wed, July 04, 2018
Finance | By Kristine Clayton

President Trump: EU Possibly Bad as China on Trade, Just Smaller

President Trump: EU Possibly Bad as China on Trade, Just Smaller

The U.S. Chamber of Commerce is planning to launch a campaign against President Donald Trump's trade policies.

Reuters was the first to report on the campaign Monday.

The EU's letter reportedly said the bloc had not yet decided on countermeasures to any new auto tariffs but said it was "likely" to apply them to "a significant volume of trade" in the event Trump imposed such tariffs.

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 U.S., as well as saying that any auto tariffs would "damage further the reputation" of the country.

Exports threatened by new tariffs include about $842.5 million worth to China, $292 million to Mexico, $88 million to the European Union and $1.1 million to Canada, the study says.

SC is not the only state expected to suffer, Iowa pork producers could lose $560 million from a Mexico tariff on the product.

While it says that it sources circuit boards from U.S. suppliers wherever possible, "paying up to 30% over the price of the same circuit boards made overseas", the majority of the raw components still come from China and it will be unable to avoid the cost increase.

The US Commerce Department said US construction spending increased almost half a per cent in May, driven by more private sector and government construction projects. The EU had calculated that a 25% tariff would have an initial US$13-14 billion negative impact on United States gross domestic product with no improvement to its current account balance.

It estimated that $294 billion, or around 19% of total United States exports past year, could be affected.

The US investigation into European Union vehicle exports "lacks legitimacy, factual basis and violates worldwide trade rules", the Commission said in a statement. "A potential offset to the blackout of corporate buying is that individual investors have been net buyers of ETFs and mutual funds that invest in USA and worldwide stocks in five of the past six weeks despite the trade worries".

EU Trade Commissioner Cecilia Malmstrom said that while the EU does have higher tariffs on cars than the USA - around 10 percent versus 2 percent - the tariffs only apply to a fraction of the vehicle market, around 15 percent. The Trump administration suspended its tariffs after Beijing agreed to increase its purchases of US goods, especially in agriculture and energy. The U.S. has higher tariffs on trucks and other products, she said.

China is expected to impose a new 25 per cent tax on soybeans in July.

"It's bad what they're doing to us", he said. Critics dismissed Beijing's commitments as vague, and Trump made a decision to proceed with the tariffs after all.

ENERGY: Oil futures recovered from the previous day's downtick, after Trump claimed that Saudi Arabia could produce up to double of the 1 million barrels-a-day increase agreed by OPEC countries.

Like this: