economy
CE threatens Trump with huge tarrifs
An all-out trade war. The European Commission (CE) yesterday warned the United States that the 25% import duties levied on cars and car parts announced by President Donald Trump in 2017 will be met with retaliation. Brussels estimates that the European response would affect US exports by about €50 billion and, if other commercial partners also respond, the blow to the US would reach €252 billion. The Commission yesterday made pubic a letter it had addressed to the US Department of Commerce on Friday. In the letter the CE points out that EU car and parts exports to the US do not threaten internal markets nor “the health of US industry nor the economy”, and in fact claims that the American consumer could face increase costs in the sector. As well, it is thought that such measures“would amplify” a negative effect in the US Gross Domestic Product (GDP) instead.