Published: Thu, July 05, 2018
Money | By Armando Alvarado

Vehicle companies issue tariffs warnings

Vehicle companies issue tariffs warnings

The document also said that European vehicle makers in the USA make about 2.9 million cars per year, accounting for 120,000 jobs directly involved in the manufacturing process, or 420,000 jobs if non-direct roles such as auto parts production and retailers are included.

The EU sent comments to the United States on whether motor imports pose enough of a threat to United States national security to justify tariffs and estimating the economic impact.

The U.S. Chamber of Commerce, usually a staunch ally of the Republican party, is launching a campaign against President Donald Trump's recent trade tariff policies, Reuters reported Monday. It was not immediately clear what those concerns are.

"In 2017, US-based European Union companies produced close to 2.9 million automobiles, which accounted for 26 percent of total USA production", it said.

The European Union and Canada have also threatened to impose tariffs on billions of dollars worth of United States products. Japan's government has warned in a report that a higher USA tariff on auto imports could backfire, jeopardizing hundreds of thousands of American jobs created by Japanese auto-related companies, raising prices for US consumers and devastating the USA and global economy.

Trump reiterated in the interview that he is not backing down in his tariffs dispute with China. He has slapped tariffs on imported steel and aluminum - action that has drawn retaliatory tariffs from USA allies like Canada, Mexico and the European Union.

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Longer term though a trade war posed a risk to the recovery of the whole global economy, he said. Several countries, including China and Canada, have expressed similar concerns.

The EU regards national security arguments as nonsense: In its report, the European Commission warned the U.S. government that the move would be unacceptable.

Tariffs could also have an effect in Newberry County, where washing machine production has begun at Samsung's first US home appliance manufacturing facility. The EU had calculated that a 25% tariff would have an initial US$13-14 billion negative impact on USA gross domestic product with no improvement to its current account balance.

"Toyota shares the Administration's goals of increasing, growing the economy and strengthening national security", the automaker said.

The European Commission, the EU executive that handles trade for the bloc, said on Monday it was trying to convince its United States counterparts that imposing such tariffs would be a mistake. "They want to see if they can work something out, and that'll be good, and if we do work it out, that'll be positive, and if we don't, it'll be positive also, because..."

Thomas Donahue, president of the US Chamber of Commerce, said Monday the tariffs were "simply taxes that raise prices for everyone". By the U.S. Chamber's calculation, almost 3.2 million Texas jobs are dependent on global trade. She added that investors, bracing themselves for US-China tariffs, may turn to defensive stocks in industries like utilities, telecommunications and real estate. Trump's 25 percent tariff on steel will hurt all American manufacturing dependent on economical steel. The Office of the U.S. Trade Representative concluded after an investigation that China's tactics range from requiring U.S. and other foreign companies to hand over technology in return for access to the vast Chinese market to outright cyber-theft.

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