The US Chamber of Commerce on Monday (2 July) denounced President Donald Trump's handling of global trade disputes, issuing a report that argued tariffs imposed by Washington and retaliation by its partners would boomerang badly on the American economy.
Meanwhile, Canada retaliated against United States steel and aluminum tariffs by imposing retaliatory duties on $12.6 billion in American goods starting Sunday.
The Chamber also cited $1.7 billion in exports from Pennsylvania, including coffee to Canada, aluminum waste and scrap to China, motorcycles to the European Union and flat-rolled alloy steel to Mexico. He noted that European carmakers create over half a million jobs in the U.S. "We cant send our cars and if we do they charge many, many times the tax that we stupidly don't charge".
"Economic analysis confirms that an increased tariff on these products will be harmful first and foremost for the United States economy", the letter said.
The escalating tariff war between the United States and the European Union, heighted by a threat of a 20% tariff on EU-imported vehicles, could result in vehicle prices rising an average of $5,800 and eliminate hundreds of thousands of jobs, according to study by the Peterson Institute for International Economics. But most other states have far more at stake. Any retaliatory measures by other countries will be much larger than what's happening with steel and aluminum tariffs, and will close off those markets to USA companies, ACC said.
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 auto market, around 15 percent.
GERMAN MIGRANT DEAL: On Monday, Merkel and her rebellious political allies reached a compromise on migration that both sides said addressed their concerns.
The group representing major foreign automakers, including Toyota, Volkswagen, BMW and Hyundai, the Association of Global Automakers said the tariffs would harm automakers and USA consumers. Mexico is adding duties to pork imports.
In a written statement to the U.S. Department of Commerce, the EU set out clear plans to respond to potential U.S. duties on European cars.
"The European Union is possibly as bad as China, just smaller", President Trump replied to Bartiromo.
Mr. Trump's secretary of commerce, Wilbur Ross, has hinted the decision on automotive tariffs could come as early as this month.