Posted on 08/30/2018 3:37:14 PM PDT by mandaladon
EU Trade Commissioner Gives Ground: We’re Willing To Drop Auto Tariffs To Zero (If The US Will Do The Same)(Full Title)
President Trump’s hard line on tariffs has won a significant concession from the European Union, at least the promise of one. Trump has been warning all summer that he could add a tariff on automobile imports which would have a significant impact on automakers in Europe (as well as Japan and Mexico). Today the European Union Trade Commissioner Cecilia Malmstrom said the EU was willing to drop all of its existing tariffs on cars and other goods to zero if the U.S. would do the same in return. From the NY Times:
President Trump’s threat to impose auto tariffs on imported cars has hit America’s trading partners in a sensitive spot, sending foreign leaders from Mexico to Japan racing to the negotiating table and, on Thursday, encouraging a significant concession by Europe…
Europe is willing to reduce “car tariffs to zero, all tariffs to zero, if the U.S. does the same,” Cecilia Malmstrom, the European commissioner for trade, told members of the European Parliament on Thursday. “We would do it, if they do it. That remains to be seen.”
Europe’s change in position is the latest indication that Mr. Trump’s threat to impose 25 percent levies on foreign-made Toyotas, Mercedeses and BMWs is forcing trading partners to give ground. Europe had previously expressed a willingness to eliminate tariffs on industrial goods, but excluded cars, and said any deal had to be part of a broad free-trade agreement…
Mexico, Canada and Europe initially insisted that they would not negotiate about trade “with a gun to the head.” But existing tariffs on steel and aluminum, and the specter of tariffs on automobiles, helped change their minds.
(Excerpt) Read more at hotair.com ...
“U.S. goods and services trade with the EU totaled nearly $1.1 trillion in 2016. Exports totaled $501 billion; Imports totaled $592 billion. The U.S. goods and services trade deficit with the EU was $92 billion in 2016.”
“The top export[US->EU] categories (2-digit HS) in 2016 were: Aircraft ($38.5 billion), Machinery ($29.4 billion), Pharmaceutical Products ($26.4 billion), Optic and Medical Instruments ($25.6 billion), and Electrical Machinery ($20.8 billion).”
Note that vehicles aren’t in there.
They are going to take our aircraft and aircraft engines for CO2 emission reasons.
https://ustr.gov/countries-regions/europe-middle-east/europe/european-union
“U.S. domestic exports of agricultural products to the EU totaled $11.5 billion in 2016 (total exports of $11.8 billion). The EU countries together would rank 4th as an Ag Export Market for the United States. Leading categories include: tree nuts ($2.6 billion), soybeans ($1.9 billion), wine and beer ($756 million), and prepared food ($579 million).”
“U.S. exports of services to the EU were $231.2 billion in 2016, up 1.2% ($4.1 billion) from 2015 and 60% since 2006. Top export sectors were professional and management services (Intellectual property ($50.2 billion), and travel (including education) ($40.4 billion).”
Europeans buy a lot of US copyrights.
“The five largest country suppliers of imports are: Germany ($114.1 billion), United Kingdom ($54.3 billion), France ($46.7 billion), Ireland ($45.5 billion), and Italy ($45.3 billion).”
“The five largest categories in 2016 were: Machinery ($64.9 billion), Pharmaceuticals Products ($55.2 billion), Vehicles ($54.6 billion), Optic and Medical Equipment ($27.5 billion), and Electrical Machinery ($26.8 billion).”
Someone tell Justin Amash (RINO/Libertarian-MI)that THIS— not the high tariffs PDJT threatened in order to obtain THIS— was the goal.
None of us should let our personal principles become blinders that prevent us seeing the larger plan.
Another factor to consider is that with Brexit, new EU rules might no longer have official English versions.
The EU loves rules, lots of rules, with stiff penalties.
“Tariffs are just one type of trade barrier.”
That’s true - Trump has to keep taxation and regulation of US manufactures competitive as well as address the fact that many of our trading partners (adversaries) subsidize capital investment and manipulate their currencies to gain unfair advantage.
However, the “mutual disarmament” of tariffs is a very important first step - because the non tariff barriers are costly to the country imposing them, and tend to be politically unsustainable in the absence of tariffs.
Trump is the ONLY person, on the face of the entire Earth, who could/can pull this nation back from the brink she was teetering on.
The absolute destruction, of this nation, that many different presidents and Congress, not to mention judges, have engendered,really had us at the tipping point. Trump can't correct ALL of it, not now, not in 8 years; however, he stopped the fall and has reversed more than we could have hoped for in such a short period of time.
I'll NEVER get tired of winning!
Oh really? Never would have guessed it. /s
The Chevrolet Spark and Sonic and Ford Fiesta will fit perfectly into the European market.
BMW is a major player in both markets. They might be one the hardest hit with tariffs.
You see quite a few Jeep Cherokees in France, and European Ford sells tons of small cars all over Europe.
It is not his goal. No way no how not ever. The US will not give up its 25% tariff on imported trucks.
Trump is extolling 0 tariffs as a strawman.
Head explosions cause more California brush fires.
I am a firm believer in retaliatory tariffs against the EU, China and Mexico and even I have to admit this is a win.
The situation is dynamic. With the EU market opening up US makers will offer vehicles compatible with the EU market. The Ford Mustang already complys with EU standards, for example.
I think the EU said that!
You are an idiot. Go sh!t on someone else’s parade.
EU doesn’t make a small mid sized pick up.
“Mexico, Canada and Europe initially insisted that they would not negotiate about trade “with a gun to the head.” But existing tariffs on steel and aluminum, and the specter of tariffs on automobiles, helped change their minds.”
Reminds me of this: https://m.youtube.com/watch?v=FoVgcEsrGjU
I suppose this is a good thing to most people. However, this will do nothing to reduce the trade deficit. Europeans don’t buy very many American autos and it has nothing to do with price. They just don’t like them that much.
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