EU cars in the US trade war - Carfoni

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EU cars in the US trade war

Tuesday, June 26, 2018
The inclusion of EU countries in the decision to impose additional customs duties on imports of steel and aluminum that the US put in place during the Trump era for national security reasons fired a trade war between the two blocks.

With the corresponding steps taken, trade disputes between the EU and the United States increased, but the automobile was finally included in the commercial wars that began.

US President Trump announced on March 9th that import tariffs on imported steel and alumina will be 25 per cent and 10 per cent, respectively, and the EU has granted temporary exemption from these taxes until June 1.

Commercial missions continue

The EU, which carries the dispute with the World Trade Organization (WTO) as the US begins to implement additional customs duties on imported steel and aluminum, has recently launched commercial retaliation.

The EU has taken measures to compensate for additional customs duties imposed by the United States and the EU has taken measures to prevent the importation of corn, kidney beans, rice, maize loaf, peanut butter, blueberries, orange juice, whiskey, cigars, 25 percent customs tax was applied to hundreds of different products such as lipstick, jeans, bed linen, shoes, sinks, ladders, ventilators, motorcycles, yachts, boats, tubes and steel.

The EU in the meantime introduced an additional customs duty of 2.8 billion euros on US products. The EU also announced that additional stabilizing measures of 3.6 billion euros would start in the future.

Following the EU decision, US President Trump has threatened to apply 20 percent additional customs duty on all vehicles imported from Europe.

Noting that the US will not step back on trade, Trump said, "The tariffs and trade barriers that have long been applied by the EU to the United States, its major companies and its employees will soon bring 20 percent customs tax on all cars coming into the US if they are not broken. used expressions.

"If the US decides to raise tariffs on cars imported from Europe, we will have no choice but to respond," said Jyrki Katainen, Vice President of the European Commission, saying that if the US takes this step, a new commercial retaliation will take place. said.

The US will assess the safety of automobile and spare parts imports from the EU

The allied relations, which entered into a tense process after US President Trump's decision to withdraw from the Paris Climate Treaty and the Iran Nuclear Agreement, to call for more defense spending with NATO members, and not to sign a declaration of conclusions at the G7 Summit in Canada, trade conflicts with trade disputes.

After this phase, the US Department of Commerce will assess whether the import of automobiles and spare parts from the EU is a security risk.

In the current case, the United States implements 2.5 percent customs duty on imported cars from EU member states and 25 percent on trucks. The EU is subject to 10 percent customs duty on US car imports.

The economic impact of the additional customs duty on automobile is big

Major German carmakers such as Volkswagen, Daimler and BMW also have large production facilities in the US.

In other words, the economic effects of the entry of automobile sectors into additional customs taxes are expected to be great. Automobiles in the EU economy and international trade have an important place.

According to the figures, EU companies sell about 48 billion euros a year to the US. More than half of this sales is carried out by German firms. The automobile sector provides about 12 million jobs across the EU. The sector also provides 4 percent of the EU GDP.

It is believed that commercial restructuring may result not only in the EU and the US but also in the consequences that could affect the global economy.
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