Trump-Juncker Autos Tariffs News by Hebei Longsheng
| Trump-Juncker Autos Tariffs Meeting Raises Risks for Beans, Needles and Routers Trade Commissioner Malmstrom has indicated the EU is preparing “rebalancing measures” should the U.S. apply section 232 automotive duties to its exports. That comes ahead of the July 25 meeting between President Trump and President Juncker. The U.S. imported $12 billion of auto-parts and $51 billion of vehicles from the EU in the 12 months to May 31. Assuming the EU retaliates against all U.S. automotive exports that still leaves $45 billion of targets to identify. Many of the largest U.S. export lines to the EU are not suitable in that they would conflict with other EU policies. Examples include aerospace ($44 billion where there are other disputes underway) and energy ($22 billion where the EU is committed to liberalization). Pharmaceuticals worth $24 billion may hurt consumer welfare though medical devices with a value of $10 billion may be an alternative. More suitable targets include food and beverages worth $12 billion (including soybeans and almonds), IT network equipment ($5 billion) and electronic components ($4 billion). |
