India raised tariffs on a slew of items in retaliation for the USA imposing higher levies on some products shipped from the South Asian nation, echoing steps taken by China, the European Union and other trading partners. That comes after the US put a 25 percent tariff on $34 billion of Chinese goods, to which Beijing responded by imposing an identical charge on the same amount of American goods.
Together the trade battles have raised the spectre of a global trade war, spooking financial markets that fear major consequences to the world economy.
Mexico has announced it will, in response, impose tariffs on United States imports, including pork bellies, apples, grapes, cheeses and flat steel, among other products.
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 US vehicle sales, suffered.
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".
His threat - which if carried out would represent a serious escalation of the burgeoning trade war - comes hours after new European Union tariffs on goods imported from the USA came into force.More news: Gregg Popovich meets with Kawhi Leonard in California
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"The rules of global trade that we have developed over the years with our American partners can not be violated without a reaction from our side", Malmstrom said. European Union steel and aluminium exports now facing U.S. tariffs are worth a total of 6.4 billion euros (RM29.6 billion).
"He's right, we make great cars in the United States".
On May 31, the White House announced that it would be ending the exemptions at the end of that day. Trump is also looking at new tariffs on auto imports, opening a new front in the trade war.
The new duties have been imposed as tensions over trade continued to grow between the United States and China. Trump would start July 6 by taxing $34 billion worth of products and later add tariffs on an additional $16 billion in goods. But if both exports and sales of USA companies inside China are measured, the U.S. has a surplus of US$20 billion with China, according to Deutsche Bank AG.
The rising tensions and the chaos surrounding the steel and aluminum tariffs are starting to generate pushback on Capitol Hill.
"80% of Mexico's Exports come to the United States". Several weeks ago, he ordered Commerce Secretary Wilbur Ross to launch what's known as a "232" investigation.