European Union 'possibly as bad as China' on trade with US, Trump says

Gladys Abbott
July 4, 2018

Wall Street was poised to open higher.

"European cars do not threaten or impair the health of the USA industry and economy", Schinas said.

European Commission spokesman Margaritis Schinas said the US investigation into the possibility of auto tariffs "lacks legitimacy, factual basis and violates global trade rules", just like last month's USA tariffs on steel and aluminum imports. China's Shanghai Composite is now in a bear market. Australia's S&P/ASX 200 rose 0.5 percent to 6,210.20 after the Reserve Bank of Australia kept its 1.5 percent benchmark interest rate unchanged. "But we don't protect ours and they protect theirs", he said.

In currency markets, the euro was knocked back on reports German Interior Minister Horst Seehofer had rejected a migration deal Merkel negotiated at an European Union summit on Friday.

"No, no, no, no", he said, noting that more tariffs could be imposed if there is no deal with China.

Today's price action suggests bullish traders were not too shaken by the impromptu agreement between President Trump and Saudi Arabia to raise production.

More news: US plan to end Iranian oil exports 'a fantasy': Hassan Rouhani

The US Chamber of Commerce, the United States' largest business group and customarily a close ally of President Donald Trump's Republican Party, is launching a campaign on Monday (July 2) to oppose Mr Trump's trade tariff policies.

The European Union has reportedly threatened to retaliate against US President Donald Trump in the escalating trade conflict developing across the Atlantic. But he denied reports he plans to pull out of the WTO.

The chamber found that USA exports will face billions of dollars in retaliatory tariffs.

And any other major economies are not far off from the lower level. And China will promptly strike back with tariffs on an equal amount of US exports.

Canada's retaliatory tariffs take effect Sunday against American products including Florida orange juice, ketchup and Kentucky bourbon. The 10-page submission was sent to the US Department of Commerce on Friday and published on Monday, according to CNN Money. The company says it is considering the request, which relates to its operations in the Democratic Republic of Congo, Nigeria and Venezuela. The idea was that China's additional purchases would shrink its trade surplus with the United States.

The Commission said global retaliation against United States tariffs on auto imports would have a much bigger impact on the American economy than the backlash provoked by the Trump administration's steel and aluminum tariffs this year. The euro rose to $1.1656 from $1.1639.

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