Connect with us

Latest

News

Europe

EU threatens response worth $294 billion for potential auto tariffs

These companies are not going to become American companies

Published

on

322 Views

The EU is threatening a tariffs response that could amount to $294 billion if Trump follows through on his threats of increased tariffs on auto imports from Europe. Nearly a fifth of America exports are matched by that sum, meaning that America would suffer a major hit by going down this road. Many of Europe’s auto manufacturers have invested a substantial amount into America, with multiple factories in the South, which was a major part of Trump’s constituency, representing tens of thousands of jobs. It’s possible, therefore that if Trump pulls the auto tariffs lever on Europe that they could respond by taxing nearly $300 billion in imports from the US, which would not bode well.

Deutsche Welle reports:

The trade conflict between the US and the EU escalates: After Trump’s threat to slap higher duties on auto imports from the bloc, the EU warns it could sanction US exports worth billions.

The European Union warned on Monday that up to $294 billion (€252 billion) worth of US exports could become the target of countermeasures if President Donald Trump remained serious about his threat to impose a 20-percent tariff on cars imported from the EU.

In a letter to US authorities, the European Commission, which handles trade policy for the bloc’s 28 members, said “up to $294 billion of US exports … could be subject to countermeasures across sectors of the US economy.”

This was the equivalent to 19 percent of US total exports in 2017, it added.

The EU executive underlined that European car companies were important contributors to the US economy and “well established” there. “In 2017, US-based EU companies produced close to 2.9 million automobiles, which accounted for 26 percent of total US production,” it said.

Pointing to sites in South Carolina, Alabama, Mississippi and Tennessee — southern US states known for their unwavering support for Trump — the EU said its companies supported 120,000 direct and indirect US jobs in plants across the country.

Trump’s threat was the latest salvo in an escalating trade spat that saw the European Union slap duties on US-made jeans and Harley Davidson motorcycles in a tit-for-tat response to US tariffs on European steel and aluminium exports. The US president has also singled out the Europeans as a problem as great to the US on trade as China. Auto imports are a particular thorn in his side.

Slovakia to feel most pain

The specter of US tariffs that sent shares in Fiat Chrysler, Daimler and BMW tumbling on European stock exchanges also spooked Slovakia’s automotive sector. As the world’s largest per capita car producer, Slovakia stands to be hit hardest if US President Donald Trump makes good on his threat, analysts say.

It boasts Germany’s Volkswagen — which is Slovakia’s biggest private-sector employer — France’s PSA and South Korean Kia along with more than 300 automotive supply companies. All told, they generate over 300,000 jobs in the eurozone country of 5.4 million inhabitants.

This makes Slovakia the EU’s leading car and car part exporter to the United States in terms of share of GDP — and the most vulnerable to tariffs. According to Slovak Institute for Financial Policy (IFP) calculations, a 25-percent tariff on cars could cost Slovakia approximately 90 million euros.

As the only Slovakia-based carmaker that exports directly to the US, Volkswagen — and its many local suppliers — will suffer the most should US tariffs be slapped on the high-end Touareg, Audi Q7 and Porsche Cayenne models produced at its Bratislava plant.

BMW appeals against car tariffs

In a letter to US Commerce Secretary Wilbur Ross, German car manufacturer BMW has urged the US not to introduce tariffs on foreign cars.

“The domestic manufacture of automobiles has no apparent correlation with US national security,” the company wrote in a statement, submitted as part of an US Department of Commerce investigation into whether car imports pose a threat to the country’s security.

Ross claimed that Trump had far-reaching, “unilateral” power to impose and adjust tariffs and quotas by invoking a rarely used 1962 law authorizing presidential action against imports that undermine national security.

BMW said it “appears that the purpose of threatening to impose these duties is to achieve certain economic objectives, under the theory that enhancing US economic competitiveness will enhance US national security.”

BMW’s largest manufacturing base in the world is in Spartanburg, South Carolina, where SUVs from the company’s X line are built. With production capacity currently being expanded to 450,000 cars, the Spartanburg factory is responsible for around 36,000 jobs, including subcontractors.

The manufacturer says that in 2017 it exported 272,000 cars from the US and imported around 248,000 cars.

Juncker to ‘dedramatize relations’

Last week, the European Commission announced that its president, Jean-Claude Juncker, would travel to Washington at the end of July to discuss EU-US trade tensions with US President Donald Trump.

Speaking after a two-day EU summit, Juncker said “we should dedramatize these relations. We need these relations, the US needs these relations. I’m not sure that we will find an agreement between the US and the EU, but we’ll try.”

Among other things, the aim of the meeting was to discuss tariffs on the automotive sector, a spokesperson said, with Trump mulling higher tariffs on EU vehicle imports.

It’s not as though these manufacturers are going to duplicate their production facilities, one batch for the US and another for foreign markets, as they already have a lot of their production in the US as it is. These companies are not going to become American companies, and they’ve already invested a lot into America, and hired a lot of Americans to build those cars. They’re already building here, though it may not be the entirely of their lineup.

So, slapping them with tariffs is only likely to result in higher operating costs and higher prices for the end product for the consumer to have to eat. That represents the possibility for layoffs and decrease in overall sales, which is bad for the US in a multitude of ways. It won’t represent more production coming to America from these companies, it won’t bring more jobs, and it won’t make things more affordable. In fact, it only means economic damage to Americans, and that doesn’t make America any greater.

 

 

Liked it? Take a second to support The Duran on Patreon!
Advertisement
1 Comment

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
Red Pilled ThoughtCrimes Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Red Pilled ThoughtCrimes
Guest
Red Pilled ThoughtCrimes

hope the US bets the eu soundly. germany is american anyway till 2099. by then islamic eu will just be like another ME warzone. with us military bases keeping it in check

Latest

Russia’s economy continues to outperform as gold takes center stage (Video)

The Duran Quick Take: Episode 118.

Alex Christoforou

Published

on

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris examine how US and EU sanctions have continued to provide a huge boost to Russia’s economy. Russia’s food sovereignty has practically been achieved, as the Russian central bank continues to buy gold and lower its exposure to western financial markets.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Follow The Duran Audio Podcast on Soundcloud.

Via TASS…

Outside pressure in the form of sanctions has become an incentive to resolve various issues of Russia’s economy, Russian Security Council Secretary Nikolai Patrushev stated in an interview with the Izvestiya daily.

He noted that through introducing sanctions against Russia, “the West aims to destabilize Russia’s economy and to create social and political tensions in society.”

“But during the difficult times, Russians have always stuck together and mobilized their resources in order to ensure the country’s sovereignty. This is what is happening now – the outside pressure has become an incentive to resolve many problems in Russia’s economy,” he said.

“Before the sanctions, it seemed that we would never be able to feed ourselves and that we are doomed to be dependent on Western import. However, right now, Russia’s food sovereignty in crucial sectors has practically been achieved, and in some areas, Russia has become the leading exporter,” Patrushev noted.

Those who apply the sanctions “can see that they (the sanctions – TASS) are ineffective and often achieve the opposite goal,” the Russian security chief concluded.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

US Neocon Foreign Policy and the War Waged Against Serbia

The Serbian assault began first by a ‘financial war’; by sanctions and finished off by an aggressive unprovoked incessant NATO bombing campaign.

Richard Galustian

Published

on

The ‘witch-hunt’ against President Trump over Russian collusion has officially ended, following the submission of the Mueller Report, enabling us to now focus on the real problems of America that effects the whole world.

In the hope of a waining of the Russophobia in America, let’s look at the US’s recent war history by starting with the 20th anniversary this month of the NATO war on Serbia in 1999 which amounted to almost 100 days of bombing of historic cities and infrastructure.

Firstly, these problems are, in the main caused by the Neocons, or Deep State, whatever you wish to call them, and the continuing promotion, by the US Military-Security Industrial Complex, of wars and regime change and secondly, Trump’s unreserved support for Israel, regardless of war crimes they may continue to commit against the Palestinians.

Incredibly after that one sided unjust and illegal war that NATO executed, NATO has the audacity to invite Serbia to join it! Something that will never happen. What do they smoke in DC, in the Pentagon and Brussels based NATO?

To compound these overall problems, the US Military and Israeli Defence Forces collaborate on these US regime change policies on all continents evidenced most recently by the arrival of crack Israeli troops last month in Brazil, prepared to support an attack potentially by Brazil and Columbia on Venezuela.

As, has now come to be expected, America pursues its Venezuelan regime change with full main stream media (MSM) cooperation, using well proven sophisticated propaganda techniques along with a variety of pretexts.

From Serbia to Iraq to Libya, where does it end? Observe that Trump is now seeking a ‘NATO alliance’ offering NATO status, to President Bolsonaro of Brazil to back the invasion of Venezuela.

So it is important to remember, as an example, that after a long war of economic and financial destabilization ended with the bombing of Serbia.

Serbia was previously a part of Yugoslavia, a country which had successfully evolved after 1945 to solve the old rivalries of the 19th and early 20th Century Balkan ethnic animosities which was, prior to the advent of power of President Tito, its past history.

The United Nations, instead of supporting, in effect, so called ‘humanitarian wars’ and ‘regime change wars’ by the US, using NATO, helped and relentlessly driven home by MSM outlets like CNN and FOX NEWS into people’s heads, must finally take a stand.

So too, Yugoslavia, once the envy of many in the world, given its then ‘non-aligned’ status under President Tito, was destroyed and broken up; ‘Balkanized’ in the early 1990s.

The Serbian assault began first by a ‘financial war’; by sanctions and finished off by an aggressive unprovoked incessant NATO bombing campaign. That’s what we can expect in Venezuela next.

This ‘Balkanization’ strategy similarly applies to Afghanistan, Iraq, Libya, Syria et al. It serves US Neocon interests to dismember States in the world and create smaller more ‘manageable’ countries.

‘Regime change’ runs against the intent, the very words contained in the US Constitution. No one in MSM ever reminds us of that fact. Nevertheless America’s ambition to overthrow other States continues, which they arrogantly now make no secret of. The next States will probably be Nicaragua then Iran to name but two.

A very noteworthy most recent outrageous unilateral declaration was made by President Trump, not yet formally agreed by US institutions, ‘giving’ something he has no authority to give; Syrian territory, the Golan Heights to be precise, to Israel. Something that one day could trigger a full scale Arab-Israeli War.

This is of extreme importance yet no real outcry comes from world leaders; well not so far.

The main reason for that decision given by senior US Administration figures is that “God anointed Trump to save the Jews”.

Not forgetting Trump’s need (which we the people don’t understand exactly why) to support Prime Minister Netanyahu in his difficult upcoming elections in Israel – in part because both countries failed to ‘regime change’ Syria – but more importantly to help the ‘financial terrorists’ who formed a company jointly that has already started drilling for oil in the Golan Heights. You might like to know who owns such oil drilling company which should answer a plethora of questions in one go that you must be asking yourselves.

The shareholder’s names tells us everything; Dick Cheney; Baron Rothschild and Rupert Murdoch. The titular heads of neocons, bankers and media on the planet.

In ending there is no more evidence required for us, the people of the world, to rise up against the globalist dark forces wherever they exist, be it in Brussels, London, France or Washington. We must demand democratic elections or start revolutions, the latter has already begun in France in the form of ‘the yellow vests’. And Brexit, by definition, is a rejection by the British people of globalism and American Hegemony.

The pattern of US destabilization and destruction of States to loot them of their sovereign resources is the unseen history of the last 100 years, not taught in any university, anywhere in the West.

As far as Ukraine is concerned, its government was taken down by the CIA and replaced by an ultra fascist regime that has full backing from America. This is no secret. But the MSM simple don’t report it.

US led NATO is ‘the transnational war machine’ of the world, devouring almost all free countries wealth. It can extort to terrorize all into conformity to the global ‘carcinogenic’ US Neocon imperialistic strategy.

A total estimated 20m people around the world have died since the end of WW11 at the hands of US Forces. Think about that for a moment.

One of the most famous sayings attributed to America’s great President Abraham Lincoln is about deception: “You can fool all the people some of the time and some of the people all the time, but you cannot fool all the people all the time.”

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

‘Dark day for internet freedom’: EU approves controversial copyright reform

Julia Reda, a German MEP with the Pirate Party, described it as a “dark day for internet freedom.”

RT

Published

on

By

Via RT


The European Parliament has voted to adopt the highly controversial Article 13 provision which would govern the production and distribution of content online under the auspices of increasing copyright protections.

Tuesday’s move will update the EU’s 20-year-old copyright rules and will govern everything from audiovisual content to memes, much to the dismay of many social media users who have already begun outpouring their grief online.

MEPs passed the legislation by 348 votes to 274 Tuesday. Opponents had hoped for last-minute amendments to be made but their efforts were in vain.

Julia Reda, a German MEP with the Pirate Party, described it as a “dark day for internet freedom.”

Article 13 or ‘The Directive on Copyright in the Digital Single Market’ makes all platforms legally responsible for the content hosted and shared on their platforms.

The process of updating the bloc’s copyright laws began in the European Commission two years ago, ostensibly to protect Europe’s publishers, broadcasters and artists and guarantee fair compensation from big tech companies.

By essentially forcing companies like Google, Facebook and Twitter to pay artists and publishers for the reproduction of their work online, include in meme format, the EU is effectively clamping down on online memery.

The onus will now be on tech companies to clamp down on content-sharing on their platforms, which will likely ensure yet more draconian policing of speech and content.

EU member states now have two years to pass their own laws putting Article 13 into effect.

Tens of thousands marched in protest across Germany ahead of the vote, decrying what they viewed as severe online censorship.

Tech giant Google said that while the directive is “improved” it will still lead to legal uncertainty and will damage Europe’s creative and digital economies.

Critics have argued that the only way for Article 13 to be effectively enforced would be through the use of upload filters which automatically check content to see if it’s copyrighted or not, at least in theory. However, the exact mechanics of such a system have yet to be fully debated and the potential for abuse is immediately clear.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

JOIN OUR YOUTUBE CHANNEL

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Validating payment information...
Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement

Advertisement

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!
Advertisement
Advertisement

Advertisement

The Duran Newsletter

Trending