Asian markets tumble as China-US trade tensions rise

Ivan Schwartz
July 6, 2018

"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. With US exports to China standing at 130 billion USD, and Chinese imports to the US at 505 billion USD, the shortfall of 375 billion USD would not have pleased US President Donald Trump over his morning coffee.

The analysis, found at www.thewrongapproach.com, includes a state-by-state breakdown of products targeted for retaliation by China, the EU, Mexico, and Canada, as well as how much those retaliatory tariffs could cost each state.

U.S. President Donald Trump has threatened tariffs on European cars on top of duties he imposed on steel imports from the European Union.

The EU has retaliated against those tariffs with measures of its own, which hit around €2.8b ($4.8b) worth of American-made products.

The U.S. Chamber of Commerce on Monday warned that the Trump administration's new tariffs on imports are likely to spark a global trade war, as other trading partners have announced billions of dollars in retaliatory tariffs against American products.

The Chamber also is expected to spend millions of dollars on the midterm elections this year in an effort to help elect like-minded candidates who back free trade, immigration and reduced taxes. By disrupting supply chains, eroding business confidence and heightening uncertainty, a trade war, they say, could "push the economy toward full-blown recession" and jeopardize America's economic expansion - the second-longest on record. "The European Union is possibly as bad as China, just smaller", he told Fox News in an interview, adding that it was "terrible what they do to us" and then mentioning the "car situation". "Tariffs that beget tariffs that beget more tariffs only lead to a trade war that will cost American jobs and economic growth".

While he has threatened auto tariffs, Trump has not yet followed through on them. If EU countermeasures on automotive tariffs take the same approach as those on steel, they will amount to around €10 billion.

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The EU has targeted $3.2 billion USA in American goods exported to the 28-member bloc, including bourbon and Harley Davidson motorcycles.

President Trump has gone from being supportive of Harley-Davidson to threatening the company with a "huge" tax.

Ltd., which has 10 factories in the United States, said trade barriers would hurt its 5,300 workers in the USA and hamper future investment.

TRADE JITTERS: Investors continued to focus on escalating global trade tensions.

The commission also underlined that European vehicle companies were important contributors to the United States economy and "well established" there.

German vehicle maker Daimler AG is the first major global corporation to issue a profit warning in response to the Trump administration's protectionist "America First" doctrine.

Other reports by GizPress

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