Published: Thu, July 19, 2018
Economy | By

Trump to host European Commission president amid trade spat

Trump to host European Commission president amid trade spat

Rep. Terri Sewell, D-Ala., flanked by John Bozzella, president of Global Automakers, left, and Sen.

"The two leaders will discuss the deep cooperation between the European Union and the United States government and institutions across a wide range of priorities, including foreign and security policy, counterterrorism, energy security, and economic growth".

A study released by a US auto dealer group warned that the tariffs could cut USA auto sales by 2 million vehicles annually and cost more than 117,000 auto dealer jobs, or about 10 percent of the workforce.

"This would equate to an $83 billion tax on USA consumers that would trigger a domino effect on the industry and economy".

There are also deep fears US levies would harm the overall Canadian and American economies because collateral damage would reach well beyond the critical, thriving auto sector. When vehicle prices rise, demand drops.

The 17,000 new vehicle dealerships in the United States could see revenues decline by US$16.3 billion to US$66.5 billion and result in the loss of 28,800 to 117,500 dealer jobs.

Juncker heads to Washington next week to discuss strained trade relations between the EU and USA after Trump imposed tariffs on EU steel and aluminum, and following his repeated threats to extend those measures to European cars.

Ross's remarks came at the start of the public hearing on the proposed auto tariffs.

No automaker or parts company has endorsed the tariffs, and they have pointed to near-record sales in recent years.

They are making their cases today during U.S. Commerce Department hearings into whether the duties should be apply based on the premise that imports are a national security risk.

Trump made the statement one day after he appeared to side with Russian President Vladimir Putin's denials of Russian election interference in the 2016 election, a contradiction to USA intelligence findings.

Wirtschaftswoche said any steps taken in response to tariffs on European cars would have to be broader than earlier, targeted countermeasures following USA tariffs on steel and aluminum. Some administration officials have suggested that his threats are a tactic to win concessions in trade talks, including North American Free Trade Agreement renegotiations.

On Thursday ahead of the hearing, auto workers from around the country will drive to Capitol Hill to show how tariffs could impact the industry, holding an event with members of Congress.

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