Published: Wed, July 04, 2018
Money | By Arnold Ball

US Chamber says $75 bn in US exports subject to counter-tariffs

US Chamber says $75 bn in US exports subject to counter-tariffs

A study by the U.S. Chamber of Commerce projects SC will be the third most affected state by tariffs from Canada, China, the European Union and Mexico imposed in response to new tariffs from President Donald Trump's administration, according to an interactive graphic the Chamber posted on its website.

The number of exports that could be hit by retaliatory tariffs among the 10 most vulnerable states ranges from $1.7 billion in Pennsylvania to $6.2 billion in Washington.

A report from Oxford Economics warned that tariff threats, if realized, would hit over 4 percent of world imports - a more than tenfold rise versus the 0.3 percent of imports hit by the new tariffs imposed so far.

The chamber's three million members applauded Trump's business tax cuts in December, but the organization has distanced itself from the president since his call for new tariffs against China, Canada, Mexico, and the European Union. The EU had calculated that a 25% tariff would have an initial US$13-14 billion negative impact on United States gross domestic product with no improvement to its current account balance.

The EU regards national security arguments as nonsense: In its report, the European Commission warned the U.S. government that the move would be unacceptable.

The commission said "up to $294 billion of United States exports. could be subject to countermeasures across sectors of the USA economy", which was equivalent to a staggering 19 percent of total U.S. exports in 2017.

Such a war could cost jobs, Bracken said.

President Donald Trump has said that the current trade battles with key U.S. allies are necessary because other countries are "taking advantage" of the US.

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Also on Friday, the European Union enacted tariffs Friday on more than $3 billion worth of US goods including bourbon, yachts and motorcycles.

In the meantime, China has promised that the second wave of tariffs are on the way while Donald Trump has promised to increase his efforts against automobile manufacturers who he believes are taking advantage of the North American Free Trade Agreement.

The EU sent comments to the US for consideration in the Department of Commerce investigation into whether auto imports pose enough of a threat to USA national security to justify tariffs and estimating the economic impact.

The European Commission said the U.S. investigation into auto imports "lacks legitimacy, factual basis and violates global trade rules", according to CNN Money.

Mr. Trump's secretary of commerce, Wilbur Ross, has hinted the decision on automotive tariffs could come as early as this month.

The trade policies have led to some countries threatening to retaliate, including Canada, which vowed Friday to impose tariffs on $12.6 billion worth of American products until the U.S.'s steel and aluminum tariffs are rolled back.

Despite questioning the probe's legitimacy, the European Union has requested to take part in a Commerce public hearing on July 19-20.

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