Reference News Network reported on August 26 that foreign media said that the US government announced in May that it would postpone the decision on whether to impose tariffs on imported cars and components in Europe until November. Now the G7 meeting is imminent. Pu has spoken to the EU again, threatening to impose tariffs on European cars. Economists said that if the trade dispute between the United States and the European Union intensifies, the impact will exceed the Sino-US trade war.
According to the Taiwan Times Newspaper reported on August 22, since Trump took office, not only has he started a trade war with mainland China, but Japan and Europe, which are allies, have been threatened to impose tariffs on steel, aluminum and automobiles. The economy has been hit by various trade wars.
US Consumer News and Business Channel (CNBC) reported on August 22 that Trump has continued to make tough remarks to the EU in recent months. Florian Henzer, an economist at Berenberg Bank, said the EU s trade with the United States is the most important. This is by far the largest bilateral trade flow in the world, he told Consumer News and Business Channel in an email.
According to the report, In 2018, US exports to the EU were more than three times those to China. Heinzer said, adding that the region may retaliate against Washington as a result.
EU Trade Commissioner Cecilia Malmstrom has said that if the United States takes the lead, they will do the same.
According to the report, each time the United States threatens to impose further taxes, Brussels will make a different list of goods to show how it can fight back against the White House.
It is worth noting that both the United States and Europe cannot afford a trade war at this stage. The head of the think tank Ecipe, Frederick Eriksson, told Consumer News and Business Channel that both European and American economies are slowing and the cyclical impact of tariffs may be considerable.
Data at the end of July showed that the euro zone s growth rate in the second quarter was only 0.2%. In the United States, the annualized economic growth rate in the second quarter of this year was 2.1% -one percentage point lower than the previous quarter-and the Federal Reserve announced in July the first rate cut in more than a decade. Cross-trends such as trade tensions and concerns about global growth have been affecting economic activity and economic prospects, Federal Reserve Chairman Jerome Powell said in the US Senate in mid-July.
The report cited Eric Jones, a professor of international political economics at Johns Hopkins University, as saying that multinational corporations business models are at risk because of a possible trade war between the United States and the European Union.
Jones said in an email: The trade war between the United States and Europe will be more challenging than the trade war between the United States and China because it will weaken US multinationals and reduce the size of the market that US companies can enter. And spur US companies to divest from their foreign assets, thereby further stimulating foreign competition.
Also In other words, In other words, this will eliminate all structural advantages of successive U.S. governments since the end of World War II.