European Union warns Trump: motor tariffs could lead to £230bn retaliation

European Union warns Trump: motor tariffs could lead to £230bn retaliation

Other companies have also made their points clear about the potential and current impact Trump's trade policies are having their bottom lines.

The EU's letter reportedly said that it has not yet decided on countermeasures to possible auto tariffs, but said it is "likely" to apply them to "a significant volume of trade" in the event Trump imposes such tariffs.

The European Commission has not confirmed the plans, saying that President Jean-Claude Juncker "has not yet decided what to discuss at the meeting with President Trump", the FT said.

"Just think about those cars that pour in here, and we'll do something, right?" While there is no economic threat to the U.S. automobile industry which is healthy, imposing restrictive measures would in fact undermine the current positive trends of the United States automobile sector.

The two leaders then quickly shook hands as Trump thanked Rutte for joining him.

Moog isn't the only United States business facing problems because of Trump's trade tariffs. In response, China will raise import duties on $34 billion worth of American goods.

The EU has warned Washington that a threat to slap Europe with major auto tariffs could inflict serious damage to the United States economy and would prompt strong retaliation.

'Non essential' water use ban
Use a watering can for your plants, and a bucket and sponge for your vehicle , and you'll be doing the environment a good turn. The UK's Met Office said in a statement on its website that hot, dry and sunny weather would continue in the vast majority.

The prospect of a deepening trade war has unsettled financial markets - which were further rattled on Monday by worries about the stability of the German government and the health of the Chinese economy.

The European Union has warned the United States that imposing import tariffs on cars and auto parts would likely lead to counter-measures by its trading partners, Reuters reported.

"MEMA remains very concerned that the pattern of recent actions from the administration signal that tariffs are one of several tactics that would be considered and imposed", the group said.

The group representing major foreign automakers, including Toyota, Volkswagen, BMW and Hyundai, the Association of Global Automakers said the tariffs would harm automakers and US consumers. "There is no vehicle in the United States, whether from Toyota, GM, Ford, FCA, Daimler or Hyundai, that is sole-sourced from exclusively US parts and components". Any tariffs on European Union cars would hit Germany hard.

On Sunday, the Financial Times wrote: "Donald Trump's threat to hit auto imports with punitive tariffs risks sparking global retaliation against as much as $300 billion of USA products, Brussels has warned".

Oil prices also fell after US President Donald Trump put pressure on Saudi Arabia to increase oil production. It could be as high as 624,000 jobs if other countries retaliate.

The president is holding firm on tariffs and efforts to renegotiate trade terms, tweeting Tuesday morning that the USA economy is strong, "and that's prior to fixing some of the worst and most unfair Trade Deals ever made by any country".

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