US industry will likely take a hit, some argue as top economic advisor to the White House resigns.
US manufacturers fear a global backlash and trade war which could hurt jobs and local output [Xinhua]
Late on Wednesday, the European Commission issued a press release in which it stated that it hoped Europe would be exempt from the aluminum and steel tariffs suggested by US President Donald Trump.
However, it said that the EU was prepared to respond proportionately and in tandem with the World Trade Organisation (WTO) rules in case the US measures are formalised and affect EU’s economic interests.
“As no decision has been taken yet, no formal action has been taken by the European Union. But we have made clear that if a move like this is taken, it will hurt the European Union. It will put thousands of European jobs in jeopardy and it has to be met by firm and proportionate response,” the press release said.
The EU response would include slapping tariffs on such US manufactured items as steel and agricultural products, bourbon, peanut butter, cranberries, orange juice, Harley Davidson motorbikes and Levis jeans.
The EU press release came as news emerged that Trump’s senior economic advisor Gary D. Cohn had resigned, with most speculating that the protectionist policies of the White House had a role to play in his stepping down.
But Trump appears to be hunkering down. During his meeting with the Swedish Prime Minister in the White House on Tuesday, Trump said that it was the EU that was unfair to the US.
“The United States has been taken advantage of by other countries — some friendly, some not so friendly — for many many decades,” Mr. Trump said at a joint press conference with Mr. Löfven.
“The European Union has been particularly tough on the United States,” he added.
Meanwhile, the Harley-Davidson company in the US said that the impending trade war would hurt its sales in Europe, where 16 per cent of its products are sold.
“Import tariffs on steel and aluminum will drive up costs for all products made with these raw materials, regardless of their origin. Additionally, a punitive, retaliatory tariff on Harley-Davidson motorcycles in any market would have a significant impact on our sales, our dealers, their suppliers and our customers in those markets.”
The BRICS Post with inputs from Agencies
Source