Markets

Trump Weighs Tariffs On Imported Cars

Trump Weighs Tariffs On Imported Cars

U.S. Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer are attending meetings Wednesday and Thursday at the Organization for Economic Cooperation and Development (OECD) in Paris.

Trump's tariffs on Washington's closest allies also drew condemnation at home from Republican lawmakers and the country's main business lobbying group and sent a chill through financial markets on Thursday.

However, the Canadian lumber industry has been less damaged than had been anticipated as duties imposed by the US government have been passed on to USA consumers in the form of higher prices.

"These tariffs are an affront to the long standing security partnership between Canada and the United States, and in particular, an affront to the thousands of Canadians who have fought and died alongside their American brothers in arms", he said, noting the U.S. national security justification for its measures.

Mexico said it would penalize USA imports including pork bellies, apples, grapes, cheeses and flat steel.

"These tariffs are a new US$347 million tax on the USA beer industry", CEO Jim McGreevy said in a statement.

Trump confirmed on Thursday tariffs of 25% and 10% on steel and aluminium exports to the U.S. respectively, from Europe, Canada and Mexico.

But the U.S.is pressing ahead nonetheless, a long-threatened tactic sure to cast a pall over the G7 summit Prime Minister Justin Trudeau is hosting next week in Quebec. Late on Thursday, Trump issued a statement about the NAFTA negotiations, saying the days of the United States being taken advantage of on trade were over.

Mexico, too, said it would impose retaliatory duties on a variety of USA goods, including steel and a host of agricultural goods, including pork, apples and various cheeses.

The Europeans are also planning countermeasures against the United States that include counter-duties on steel products, bourbon whiskey, peanut butter, motorcycles and jeans. The Mexican peso dropped about 1%, hitting its weakest level against the dollar in almost 15 months, and the Canadian dollar shed about 0.6%. Shares of Harley-Davidson Inc fell 2.2% and Brown-Forman Corp, maker of Early Times and other bourbon brands, lost 2.1%.

The EU trade commissioner, Cecilia Malmstrom, said the EU "did everything to avoid this outcome". European Union exports potentially subject to USA duties are worth 6.4 billion euros ($7.5 billion).

She warned that the decision would effect United States defence projects.

May also noted that the European Union and United Kingdom "should be permanently exempted from tariffs" and Britain would work with the bloc to protect and safeguard workers and industries. The countries had been granted a temporary exemption from the tariffs introduced by the White House on March 1. Noting her discussions with USA officials, she said. Shares of Century Aluminum Co jumped 3.3% but Alcoa Corp shed 0.9%.

A final decision on U.S. President Donald Trump's threatened steel and aluminum tariffs is expected by Friday.

Prasad warned that the United States was doing so at the cost of alienating key allies and undercutting broad global pressure on China to change its trade and economic practices.Ross himself heads to Beijing on Friday where he will attempt to get firm deals to export more US goods in a bid to cut America's $375 billion trade deficit with China.

Trump criticized Canada's softwood lumber and agriculture policies, using them as examples of how America is being treated poorly by Canada.

"I was visiting a factory in Northeast Ohio and the manager of the product line was pointing out to a series of tires that used to be imported from overseas, now being brought in the United States because of the tariff that was imposed past year, and he was very excited about the fact that the product came back to the United States", he says.