Moog warns that Trump trade tariffs pose a threat to its business

EU is possibly as bad as China’ Trump attacks partners in new ‘unfair trade’ rant

EU is possibly as bad as China’ Trump attacks partners in new ‘unfair trade’ rant

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.

The European Union submitted its formal comments to the United States Department of Commerce in the framework of an on-going investigation on the impact of automotive imports on the U.S. national security.

The U.S. Chamber of Commerce, the nation's largest business group and customarily a close ally of President Donald Trump's Republican Party, is launching a campaign on Monday to oppose Trump's trade tariff policies. It was not immediately clear what those concerns are.

"At some point, this tariff impact will be felt by customers", the company said in a filing with the US Commerce Department.

A year ago the European Union exported $43.6 billion worth of cars to the United States. 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. One of the first efforts to fight back came in the form of $50 billion in tariffs issued on 545 product categories by China. The EU, Mexico, Canada, Turkey and India introduced duties on United States products in return.

As well as the tariff threats, the European Commission is also believed to have warned Trump that his behaviour could "result in yet another disregard of global law" by the United States, as well as saying that any auto tariffs would "damage further the reputation" of the country.

"Simply put, tariffs are a tax on American consumers and businesses", the U.S. Chamber of Commerce said on its website. The company fears that the increase in price for circuit boards and other Chinese-built components will have the "very real potential of forcing us to lay off workers and could (in a worst case scenario) require us to move some, if not all, of our manufacturing overseas".

The EU has a 10 per cent tariff on cars compared to 2.5 per cent for cars entering the US. They don't want our farm products.

The new 25% importation tax is set to take effect on 6 July. Employment in the USA auto sector, which accounts for over four million jobs, could be particularly harmed. He said his administration is eyeing a 20 percent duty, and he suggested that the auto industry is a key target of his trade strategy.

And it anxious that the stakes are higher with auto tariffs.

Although Trump has previously been persuaded to back off trade threats based on the fact that they would hurt states that supported him in the 2016 presidential election, he has taken a more aggressive tack in recent months. It said that vehicle imports from Europe to the USA had grown at the same pace as demand from the U.S. market, showing that they were filling a gap that domestic output could not, rather than eating into domestic sales as Trump has suggested.

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