EU delivers stark warning to US over auto tariffs

The European Union Mexico and Canada have all the hit U.S. with billions in retaliatory tariffs

The European Union Mexico and Canada have all the hit U.S. with billions in retaliatory tariffs

The analysis was compiled using data on state exports from the U.S. Department of Commerce and data on U.S. exports subject to foreign tariffs from the official government sources of China, the EU, Mexico, and Canada. The three Texas industries facing the biggest risk are all big traders with Canada, which has announced $12.6 billion in retaliatory tariffs against American-made products since Trump placed new tariffs on its aluminum steel. "They firmly believe that free trade is a powerful engine for global economic growth". Generally, they say tariffs help create a level-playing field for USA manufacturers. Mexico plans to raise existing tariffs on unprocessed US pork to 20 percent from 10 percent on July 5, and China will place a 25 percent tariff on USA soybean exports on July 6.

When the US Census Bureau published the latest statistics showing the discrepancy in trade between the United States and China, it didn't make for happy reading.

The EU said in its submission that EU companies make around 2.9 million cars in the U.S., which supports 120,000 jobs, or 420,000 jobs if auto dealerships and vehicle part retailers are included.

"There is, as a outcome of the tariffs that the United States is putting in place, a wave of retaliation that's coming against American exports" from trading partners like Canada to the tune of $75 billion, Murphy said. China has threatened to retaliate in kind with its own tariffs on U.S. agricultural products and other goods. "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".

The US Chamber also published an interactive map on the internet showing the impact of the trade dispute in all 50 states.

Using a state-by-state analysis, it argues that Trump is risking a global trade war that will hit the wallets of US consumers.

Three suspects charged in 2017 Los Angeles kidnapping of actors
Amber Neal , the woman who was arrested at the Inglewood Starbucks on Monday, was also allegedly involved. Bail for Jones and Neal was set at $1 million, and Stewart's bail was $2.08 million, police said .

Trump has implemented billions of dollars in tariffs targeted at China, Canada, Mexico and the European Union, saying such moves are needed to offset trade imbalances.

In response, Flake stressed that the United States needs its allies.

ANALYST'S TAKE: "In the lead up to the July 6 tariffs implementation date, uncertainties continue to loom and with that, Asian equity markets look set to be braced for another day of lackluster trading", said Jingyi Pan of IG.

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.

While he has threatened auto tariffs, Trump has not yet followed through on them.

"We'll spare no effort, be it at the technical or political level, to prevent this from happening", a spokesman for the Commission told reporters, adding that Commission President Jean-Claude Juncker's trip to Washington later this month would seek to stop any new United States tariffs.

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