President Trump: EU Possibly Bad as China on Trade, Just Smaller

Muriel Colon
July 4, 2018

Meanwhile, on Sunday, July 1, Canada began to impose tariffs on billions of dollars of goods from the a retaliatory measure in the wake of Trump's aluminum and steel tariffs.

They say China's decision in May to lower tariffs on imported cars will make little difference because imports make up such a small part of the market.

But what may temper the blow from punishing tariffs could be a move by the White House to enable Chinese telecom company ZTE Corporation (ZTCOF) to purchase USA tech equipment again as well as Trump's less strict decision when it comes to investments by Chinese companies in US technology companies.

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.

Stocks on Wall Street were volatile as investors anxious about the mounting trade war between the United States and its trading partners.

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. On Friday, Canada struck back at USA steel and aluminium tariffs, vowing to impose punitive measures on US$12.6 billion (S$17.23 billion) worth of American goods until Washington relents.

"Tariffs imposed by the United States are nothing more than a tax increase on American consumers and businesses, including manufacturers, farmers, and technology companies, who will all pay more for commonly used products and materials", the study said. Benchmark U.S. crude added 85 cents to $74.79 a barrel in electronic trading on the New York Mercantile Exchange. Trump previously announced a 25% tariff of up to $50 billion of Chinese products starting on July 6, while China in response will place tariffs on $34 billion of American goods coming into the country.

Starting Friday, the US will tax 818 Chinese products, worth $34 billion a year, from the original list.

Mr Trump tweeted on the weekend that Saudi Arabia's King Salman bin Abdulaziz Al Saud had agreed to pump more oil, "maybe up to 2,000,000 barrels".

Foreign business groups argue that "Made in China 2025" is unfairly forcing them to the sidelines in those industries. Traders are reacting to retaliatory events and the imposition of fresh tariffs at the end of the week. They have asked supporters to petition elected congressional representatives in North Carolina, the state where Moog's operations are located.

Trump has previously been persuaded to back off of trade threats with the argument that states that backed him in the 2016 presidential campaign will be hard-hit.

Pushing back against Mr Trump, the chamber based a state-by-state analysis on data from the US Department of Commerce and government agencies in China, the EU, Mexico, and Canada. Trump's 25 percent tariff on steel will hurt all American manufacturing dependent on economical steel.

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