Attacking the German economy serves Trump’s Russian masters as well as some key competitors with no real benefit to the US, much less protecting national security. It is clear that continued trade disruption is designed to benefit specific materials sectors and speculators, much like the other tariffs. Plutocratic profits before people as usual, and for reasons no less specious than a border wall because of “national security”.
It would be really disruptive, so much so that the US auto industry is opposed -- it would mess up their supply chains, while providing little in additional sales 2/
And the abuse of the national security loophole -- this is absurd, and everyone knows it – would basically mean that the US is showing contempt for trade agreements 3/
And, of course, these are our most important democratic allies – or possibly, in a few months's time, former allies 4/
Should the US impose such tariffs, the EU Commission will likely break off trade negotiations, complain to the World Trade Organization, and impose counter-tariffs on US-made goods. A list of counter-tariffs worth around €20 billion annually already exists and the focus will be on hurting the congressional districts, which support Trump. The list is confidential but it is thought that it would be similar to the one made during steel and aluminum trade clashes last year — that is, they would involve similar kinds of products. But hitting back at US car exports is a bit more complicated because many German companies produce cars in the US that are then exported to Europe, for example high end BMW SUVs. Any counter tariffs to hurt US carmakers, and not German ones, would need to be carefully targeted.
There is still hope that a trade war can be averted. The Trump administration is said to be divided on the issue, and the US is already enmeshed in trade tensions with China. In this area, Europe could be a useful ally for the US against the Chinese. On the other hand, Trump might get tough on Europe, just to show China he means business. US industry insiders have told other media that there will almost certainly be tariffs, although nobody knows what kind they will be.
www.handelsblatt.com/…
But auto industry advocates say any new tariffs would add thousands of dollars to the price of cars and trucks, which are already pricier to produce thanks to last year's U.S. tariffs on steel and aluminum imports — and not only foreign vehicles.
www.cbsnews.com/…
As Trump ponders auto tariffs, free-trade Republicans push back
- The report was crafted under section 232 of a 1962 trade law, a provision that allows tariffs on items that threaten national security that was scantly used before the Trump Administration.
- Pro-free-trade Republicans are building new tools to push back, in case the president implements new tariffs in the name of national security.
www.cnbc.com/...