Moog warns that Trump trade tariffs pose a threat to its business

Donald Trump

Image Donald Trump believes the EU treats America 'very badly'

General Motors warned last week, for example, that retaliatory duties from other countries could force it to cut jobs in the U.S. And Wisconsin-based Harley-Davidson has announced plans to shift some of its production overseas in the face of the retaliatory tariffs.

European Union threatens to retaliate in growing trade war, if the USA places tariffs on European cars, the FT reports.

General Motors also warned that proposed tariffs on foreign cars and parts could result in fewer cars being built on USA soil.

Trump has said that allies such as the European Union are "as bad as China" on trade.

Trump contends that tariffs encourage companies to source locally and "buy American", while opponents of the measures say that they threaten economies both local and global.

The commission said "up to $294bn (£223bn) of United States exports. could be subject to countermeasures" that would be considered by the European Union and other trading partners, which amounts to nearly a fifth of the total value of USA exports in 2017.

Many U.S. manufacturers have decried the tariffs.

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

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The White House has already imposed tariffs on European Union steel and aluminium and faced reprisals in the form of extra charges on a range of goods, including US-made motorcycles, jeans and even playing cards.

The comparison is particularly painful to Europeans, which are attempting to forge common ground with the Trump administration on the idea that the real danger to fair trade is China.

The EU warned in a 10-page submission to the US Commerce Department that imposing import tariffs on cars and auto parts would harm the US automotive industry and may lead to retaliatory tariffs on $US294 billion ($401 billion) worth of US exports, almost one-fifth of US exports.

In its submission, the European Union argues that trade restrictions would likely to lead to higher costs for US -based producers, and in effect become a tax on American consumers.

Mr Trump is now mulling tariffs of up to 20% on all cars and vehicle parts made in the EU.

The bloc exported 37.4 billion euros ($43.6 billion) of cars to the 2017, while 6.2 billion euros worth of cars went the other way.

And in addition to the negative economic consequences, Trump's posture toward the rest of the world makes it less likely that the United States' allies will be there when it needs them. It's the same approach the Trump administration used before it slapped tariffs on steel and aluminum imports earlier this year.

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