European Union warns Trump that raised auto import tariffs would hurt US

FTSE 100 down 1pc as markets sink on renewed trade fears

FTSE 100 down 1pc as markets sink on renewed trade fears

This is based on a letter, reported by the Financial Times, from the European Commission to the U.S. Commerce Department.

The EU's letter reportedly said the bloc had not yet decided on countermeasures to any new auto tariffs but said it was "likely" to apply them to "a significant volume of trade" in the event Trump imposed such tariffs.

The European Union is reportedly preparing to slap tariffs on up to $300 billion of USA products, if the White House goes ahead with its threatened tariffs on auto imports from the EU.

The submission said that tariffs on cars and vehicle parts could undermine U.S. auto production by imposing higher costs on United States manufacturers.

Europe is "possibly as bad as China" on trade, U.S. President Donald Trump said in an interview broadcast Sunday, with trade wars emerging against both the Asian giant as well as longtime allies in Europe and Canada.

The European Union says that for some goods, such as trucks, U.S. import duties are higher.

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. China has already imposed tariffs of their own in response to USA decisions, and BMW fears more could come from the E.U., Reuters reported. "Look what they do to our farmers".

Trump deserves more latitude and less attitude
Trump talks directly to the camera and praises his talks with Kim as "open, honest, direct and very, very productive". The president afterward said he wanted to end the United States' joint military exercises with South Korea.

Brussels delivered the threat amid growing fears of an escalating trade war, as the United States president targets the bloc and others, including China, as part of a campaign to protect U.S. jobs. In all fairness, they have their farmers, so they want to protect their farmers.

The EU's letter reportedly said that it has not yet decided on countermeasures to possible vehicle tariffs, but said it is "likely" to apply them to "a significant volume of trade" in the event Trump imposes such tariffs.

"Economic analysis confirms that an increased tariff on these products will be harmful first and foremost for the USA economy", said the letter, seen by AFP on Monday.

In its submission, the European Union said EU companies make close to 2.9 million cars in the United States, supporting 120,000 jobs - or 420,000 if cars dealerships and auto parts retailers are included.

The potential new European Union measures would apply "across sectors of the United States economy", the letter stated.

Trump has slapped billions of dollars' worth of tariffs on a number of countries in recent weeks, including tariffs on steel and aluminum from the EU.

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