The U.S. Chamber of Commerce Is Fighting Trump's Tariffs with Facts

Sean Reid
July 4, 2018

Citing data from S&P Dow Jones Indices, Barron's reported that S&P 500 companies bought back $189.1 billion of shares during the first three months of the year.

Trump has criticized the European Union for having higher import taxes on cars and for its trade surplus with the United States, this includes a 10 percent tax on cars entering the EU compared with a 2.5 percent tax for cars entering the U.S. The submission said European auto companies are "well established" in the United States.

Instead, the summit is expected to produce a modest communique, which affirms the commitment of both sides to the multilateral trading system and promises to set up a working group on modernizing the WTO, EU officials said.

Today's price action suggests bullish traders were not too shaken by the impromptu agreement between President Trump and Saudi Arabia to raise production. In other words, we had a deficit with the European Union.

The U.S. has complained about Chinese policies that Washington said either forced companies to relinquish key technology or allowed China to steal it outright. "I love those countries", said Trump, naming Germany and Scotland.

"I think the European Union - we're going to be meeting with them fairly soon", Trump said.

The US has imposed tariffs on European steel and aluminium imports and is conducting another national security study that could lead to tariffs on autos and auto parts.

The letter also said any auto tariffs would "damage further the reputation" of the United States, according to the FT.

The commission said global retaliation against USA tariffs on auto imports would have a bigger impact on the United States economy than those provoked by the Trump administration's steel and aluminium tariffs.

China has warned that it won't yield to Trump's pressure. "It was never comfortable with the West being one bloc", said a European official involved in EU-China diplomacy.

The Trump administration has made aggressive use of tariffs to address what it sees as trade imbalances with other countries.

The traditionally GOP-friendly organization, which represents more than 3 million businesses, has launched a campaign against Trump's tariffs, arguing that they have triggered a trade war that will cost and will send consumer prices soaring. China's plans to move rapidly to electric vehicles mean that any new benefits it offers traditional European carmakers will be fleeting.

As for the chances of a global recession, Yu says a lot still needs to happen before we get to that point.

"We don't know if this offer to open up is genuine yet", a third European Union diplomat said.

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