European Union delivers stark warning to U.S. over auto tariffs

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The European Union warned the Trump administration Monday that it might slap tariffs on $300 billion of us exports in retaliation for Trump's threatened tariffs on European cars.

The powerful US Chamber of Commerce, the nation's largest lobby group with more than 3m members, has launched a campaign to oppose Trump's tariffs, while the European Union threatened to slap retaliatory tariffs on hundreds of billions of dollars worth of US goods.

Connecticut, with $134 million in exports potentially subject to tariffs - from millions in scrap metal to $4,595 in sleeping bags - is second only to MA among the six New England states. It won't target 284 other items, worth $16 billion, until it gathers further public comments.

The United States is set to impose tariffs on $34 billion worth of additional goods from China on July 6.

Trump's trade policies are unpopular among USA voters as well, according to a Quinnipiac University poll released Monday.

"The European Union is possibly as bad as China, just smaller", President Trump replied to Bartiromo. 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.

"No, no, no, no", he said, noting that more tariffs could be imposed if there is no deal with China.

The warning was included in the European Commission's written response to the Donald Trump administration's investigation into imports of cars and vehicle parts.

In May, his administration had initiated an inquiry to ascertain if the automobile imports were a national security threat.

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According to Axios , Trump was briefed on the bill in May, but it hasn't yet been reviewed by key economic advisers. The China's customs agency did not respond to Reuters' requests for comment.

A report by New York-based Rhodium Group, a research consultancy, in April showed that Chinese restrictions on foreign investment are higher in every single sector save real estate, compared to the European Union, while numerous big Chinese takeovers in the bloc would not have been possible for EU companies in China.

Michigan's auto industry, steel products and aluminum products are the hardest hit by tariffs.

Two major auto groups last week said that imposing up to 25 percent tariffs on imported vehicles would eliminate hundreds of thousands of jobs, according to Reuters.

President Trump, on the other hand, has until November this year when the Democrats could potentially regain control of the House of Representatives.

For example, the Chamber said Texas could see $3.9 billion worth of exports targeted by retaliatory tariffs; Tennessee, $1.4 billion; and SC, $3 billion.

Officials in Brussels stressed that European car-makers account for up to 26-percent of US automotive output.

Perhaps most unsettling to businesses and investors, Washington and Beijing have engaged in tit-for-tat tariffs and threatened retaliation that has raised the prospect of a trade war between the world's two largest economies.

Dutch Prime Minister Mark Rutte interrupted Donald Trump on Monday, saying "No" when the USA president claimed that failing to reach a deal on European Union trade would be "positive".

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