European Union says it will start to impose tariffs on United States on Friday

Irving Hamilton
June 22, 2018

China has said it would impose additional tariffs on 659 US goods, with duties on 545 to kick in on July 6, after Trump said Washington would levy tariffs on $50 billion of Chinese products.

The goods targeted include typical American exports like bourbon, peanut butter, cranberries and orange juice, in a way that seems designed to create the most political pressure on President Trump and USA politicians.

EU Trade Commissioner Cecilia Malmstrom said this week that the 28-nation bloc was "left with no other choice" but to impose tariffs of its own after the "unilateral and unjustified decision of the United States".

"The fast-shrinking Chinese investment in the US reflects the damage being done to China-US-trade the trade crusade of Trump and his trade hawks", it said.

The EU exported some 5.5 million tons of steel to the US previous year.

Trump imposed tariffs of 25 percent on European Union steel and 10 percent on aluminum on June 1.

The EU also has in reserve potential tariffs of 10% to 50% that it could impose on a further 3.6 billion euros (RM16.6 billion) of United States imports in three years' time. Turkey is targeting USA products and India has announced tariffs on 29 US products, including steel and iron, almonds, walnuts, and chickpeas. Which means even if we are not exporting to the United States directly, we may as well be exporting indirectly by sending our primary products which are commodities and raw materials indirectly to the to the USA through Europe, India or China.

Personal tax cut up for debate
Without Labor's support, the government could still get the cuts through with the help of Pauline Hanson's One Nation. The opposition leader described the plan as it stands as "pretty dodgy".

Last week pork was included in a second round of tariffs to be imposed on July 6.

Gao's comments come two days after President Trump directed his top trade official to identify $200 billion more worth of Chinese goods that will be subject to tariffs, escalating the ongoing trade dispute.

That hands the Chinese side room to impose penalties such as Customs delays, tax audits and increased regulatory scrutiny.

Mr Trump said the global oversupply of those metals - driven by China - threated American steel and aluminium producers.

Financial markets have been hit harder with the rise in threats, and vehicle companies felt the brunt of that on Thursday, even though companies like General Motors and Ford Motor rebounded from earlier stock price lows.

The tit-for-tat conflict between the U.S. and China - the world's two largest economies - is poised to escalate from there.

One thing that may cause Beijing to hold back from a full-scale attack on American companies is concern about the impact it would have on the domestic economy.

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