European Union slaps revenge tariffs on United States as trade war erupts

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Such a move would be a massive escalation of the already intense trade fight between the USA and Europe.

The European Union will start taxing a range of US imports Friday, June 22, including quintessentially American goods like Harley-Davidson bikes and cranberries, in response to President Donald Trump's decision to slap tariffs on European steel and aluminum.

EU countertariffs on a list of United States products would come into force on Friday, the European Commission said Wednesday.

Europe's autos stocks sold off rapidly, down as much as 1.3 percent, and Germany's DAX index fell into negative territory, down 0.2 percent as big German carmakers Daimler, Volkswagen (VOWG_p.DE) and BMW, which are heavily reliant on USA vehicle sales, suffered.

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However the dispute ends, it has exposed her government's fragility at a hard time for the continent. The people of Europe are moving farther and faster on illegal immigration than their leaders.

When the US tariffs on steel and aluminum went into effect on June 1, the European Union said they were "illegal", pledged to impose its own tariffs, and filed a case against the the World Trade Organization. "The abusing the tariff methods and starting trade wars all around the world".

In addition to the European Union, both Mexico and Canada have responded with their own tariff threats. A group representing major USA and foreign automakers has said it was "confident that vehicle imports do not pose a national security risk".

"The rules of global trade, which we have developed over the years hand in hand with our American partners, can not be violated without a reaction from our side", she said.

"He's right, we make great cars in the United States".

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On Tuesday, the US and South Korean militaries confirmed they have called off scheduled joint exercises following Trump's order. In a news conference following the summit, Trump said North Korea had agreed to return the remains of USA soldiers.

And he is threatening to impose another national security-based tariff on imports of cars, trucks and auto parts. "They do have, though, very strong Immigration Laws", Trump posted on Twitter, a day after a vote on a compromise immigration measure was postponed in the House. Trump has threatened to impose new taxes on European and other imported cars - an idea that caught many by surprise, because domestic automakers GM and Ford have been thriving, and foreign companies such as BMW, Toyota and Honda now have large plants in the U.S. Trump would start July 6 by taxing $34 billion worth of products and later add tariffs on an additional $16 billion in goods. Bejing will respond in kind. He's saying 'Look, I want cars made in the United States. It expects to employ 2,000 people initially, eventually bringing the workforce up to 4,000, according to its website.

Mexico placed tariffs on American products ranging from steel to pork to bourbon two weeks ago.

European consumers would be able to find "alternatives", European Commission Vice President for trade Jyrki Katainen said.

"For most American families, their auto is the second biggest purchase they make", Hatch told Ross.

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