As Europe’s Tariffs on U.S. Goods Take Effect, Trump Threatens Retaliation

US President Donald Trump

US President Donald Trump

"We did not want to be in this position", EU Trade Commissioner Cecilia Malmstrom said in a statement.

And the highest-stakes fight still looms: In two weeks, the United States is to start taxing $34 billion in Chinese goods.

The move confirms a tit-for-tat dispute that could escalate into a full trade war, particularly if US President Donald Trump carries out his threat to penalise European cars.

The European Union (EU) will begin charging import duties of 25 per cent on a range of U.S. products tomorrow, in response to USA tariffs imposed on EU steel and aluminium early this month, the European Commission said yesterday.

Customs agents across the European Union internal market of 500 million people will impose the duty, hiking prices on US-made products in supermarkets and across factory floors.

The EU has also filed a case contesting the legality of the USA tariffs with the World Trade Organization.

Other countries hit by the United States tariffs have also retaliated, raising fears of a global trade war.

Asian markets tumble as Trump tariffs spark trade war fears
Iran had been expected to oppose any rise in crude output, but it has now signaled it may support a small increase. We expect prices to be in broad range of $63 and $66 on the WTI, with heightened volatility ahead of the event.

The imposition of tariffs has raised the specter of a full-blown trade war, which could be costly to consumers, jobs and the global economy. Trump on Monday evening ordered up identification of $200 billion in Chinese imports for additional tariffs of 10 per cent - with another $200 billion after that if Beijing retaliates.

They also threatened a second round of tariffs on some $4.3 billion worth of United States products if the dispute was not resolved.

"He's right, we make great cars in the United States". Trump has threatened to impose new taxes on European and other imported cars - an idea that caught many by surprise, because domestic automakers GM and Ford have been thriving, and foreign companies such as BMW, Toyota and Honda now have large plants in the U.S. Canada's retaliatory measures begin on July 1, and Mexico and other nations have also announced they will respond.

"No, because the USA is both an important export market and a strong production base for us", Mattes said.

Trade representatives from India and the United States are set to meet in New Delhi next week.

Sen. Orrin Hatch, who opposes the vehicle tariffs, did the math for Commerce Secretary Wilbur Ross at a hearing this month.

"The president has been so belligerent that it becomes nearly impossible for democratically elected leaders - or even a non-democratic leader like (Chinese president) Xi Jinping - to appear to kowtow and give in", said Philip Levy, senior fellow at the Chicago Council on Global Affairs and a former White House trade adviser.

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