European Union to begin counter trade tariffs against USA on Friday

European Union to begin counter trade tariffs against USA on Friday

European Union to begin counter trade tariffs against USA on Friday

Mexico has announced it will, in response, impose tariffs on United States imports, including pork bellies, apples, grapes, cheeses and flat steel, among other products.

Economists note that on the whole, the US and European Union tariffs will not immediately cause great damage to either side's economy.

Late last month, Trump proceeded to infuriate USA allies - from the European Union to Canada and Mexico by imposing tariffs of 25 percent on imported steel and 10 percent on aluminum. Trump has threatened to impose new taxes on European and other imported cars - an idea that caught many by surprise, because domestic automakers GM and Ford have been thriving, and foreign companies such as BMW, Toyota and Honda now have large plants in the U.S.

The Commission formally adopted a law putting in place the duties on 2.8 billion euros (RM12.9 billion) worth of USA goods, including steel and aluminium products, farm produce such as corn and peanuts, bourbon, jeans, and motorcycles.

China says will hit back if the latest tariff threats from Trump materialize, while India slaps retaliatory levies on U.S. goods. The EU does not rely on the a market for its steel exports as much as Canada or Mexico, which are also being hit by the US tariffs and stand to lose more. Mexico imposed tariffs on American products ranging from steel to pork and bourbon two weeks ago.

Some of the products chosen are created to target the states of Republicans, who are seeking to retain control of both chambers of the US Congress in November elections.

Case in point: Daimler AG late Wednesday slashed its earnings outlook for the year, saying fewer Chinese consumers will buy Mercedes-Benz SUVs because of tariffs Beijing is slapping on autos imported from the US. Beijing has vowed to retaliate with its own tariffs on US soybeans and other farm products in a direct shot at US President Donald Trump's supporters in America's heartland.

"The U.S. has the upper hand over China in technology, defence and worldwide influence, and therefore the country will continue to have a strategic initiative over Beijing for the foreseeable future", it said.

South Korean and Japanese companies have all felt this effect, with their businesses in China hurt as part of a dispute between states.

"As long as China can effectively utilise its successful policies and experiences accumulated since the reform and opening up, and avoid subversive mistakes, the country will see robust momentum for development", the Global Times said.

Even before Mr Trump's latest threat, some United States companies in China were feeling the pressure.

One advantage of this tactic for China is that this time, the numbers are on its side, as USA investment in China is far larger than the reverse.

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