EU warns Trump: auto tariffs could lead to $300B retaliation

For example, almost $4 billion (£3.1 billion) worth of exports from Texas could be targeted by retaliatory tariffs, the Chamber said, including $321 million in meat the state sends to Mexico each year and $494 million in grain sorghum it exports to China.

The Trump administration has also sought for months to renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico, though Trump said in a Fox News interview that aired on Sunday that he will not sign a new deal until after the November elections.

The European Union today slammed the Trump administration for considering tariffs on auto imports, saying they could lead to global retaliation against some $300 billion in usa goods amid signs of a brewing trade war. On Friday, Canada struck back at United States steel and aluminium tariffs, vowing to impose punitive measures on US$12.6 billion (S$17.23 billion) worth of American goods until Washington relents.

Early last month, Mexico imposed tariffs on USA products ranging from steel to pork and bourbon, while the European Union levied duties of 25 percent on 2.8 billion euros of us imports, including jeans and Harley-Davidson motorcycles.

On Monday, Trump said the World Trade Organization has treated the U.S.

The EU regards national security arguments as nonsense: In its report, the European Commission warned the United States government that the move would be unacceptable.

The United States is set to impose tariffs on $34 billion worth of additional goods from China on July 6.

WALL STREET: Major U.S. benchmarks closed higher Monday, buoyed by a last-minute rally from technology companies.

According to a report in the Financial Times, a letter sent by the European Commission to the US Department of Commerce says the EU could hit $300 billion - the equivalent of well over R4 trillion - of US goods with tariffs, if Trump follows through on his threats to place big taxes on European vehicles being imported in the US.

Trump's government is threatening to raise tariffs for EU-made cars to 20% to "rebalance" the EU's 10% tariff on cars imported into its region.

Exports threatened by new tariffs include about $842.5 million worth to China, $292 million to Mexico, $88 million to the European Union and $1.1 million to Canada, the study says.

He has also stepped up attacks on the European Union via Twitter and at his public rallies.

U.S. tariffs on $US34 billion ($46.3 billion) worth of Chinese goods come into effect on Friday with a big risk of more tit for tat tariffs from China.

ENERGY: Oil futures recovered from the previous day's downtick, after Trump claimed that Saudi Arabia could produce up to double of the 1 million barrels-a-day increase agreed by OPEC countries. It's the same approach the Trump administration used before it slapped tariffs on steel and aluminum imports earlier this year.

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