EU, that stinks!
Vow to hit back on Trump tariffs
PRESIDENT TRUMP’S tough “trade war” talk on Friday prompted retaliatory warnings from allies and industry experts — with even the European Union threatening to impose tariffs on “Harley-Davidsons, bourbon and blue jeans.”
European Commission President Jean-Claude Juncker (photo) said the EU would have no choice but to respond in kind if Trump follows through on his abruptly announced plans to impose steep tariffs on steel and aluminum imports.
“We must show that we can also take measures. This cannot be a unilateral transatlantic action by the Americans,” Juncker told German television stations. “I’m not saying we have to shoot back, but we must take action.
“We will put tariffs on Harley-Davidson, on bourbon and on blue jeans,” he added.
Canadian Prime Minister Justin Trudeau called the Trump move “absolutely unacceptable” and said he was prepared “to defend Canadian industry.” Canada is the United States’ biggest foreign source of both metals.
Trump took to Twitter to defend his call to put import tariffs of 25% on steel and 10% on aluminum.
The President said that the United States is losing on trade with virtually every country and that “trade wars are good” and “easy to win.”
“Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!” Trump later added.
Trump proposed the tariff on Thursday after spending time fuming about top aide Hope Hicks spilling to investigators that she has told “white lies” on Trump’s behalf, and a feud between his chief of staff and sonin-law, NBC News reported.
The announcement caught top economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin by surprise. Both had been opposed to the idea.
The trade war mongering sowed mayhem across international markets and roiled trading on Wall Street.
Markets tumbled in Asia, where China expressed “grave concern,” and industry leaders representing companies that rely on steel imports in the U.S. said the effects would be wide-reaching.
The American International Automobile Dealers Association warned Trump’s proposal would drive prices up “substantially.”
Juncker’s comments were similar to a list floated last week by EU officials after the Commerce Department urged Trump to impose tariffs or quotas on foreignmade metals.
Retaliation could take the form of tariffs on exports that originate in Republican states in particular, putting pressure on the GOP to talk Trump back from the brink of economic war.
Motorcycle maker Harley-Davidson is based in Wisconsin, home to House Speaker Paul Ryan. Bourbon comes from Senate Majority Leader Mitch McConnell’s home state of Kentucky. Campbell Soup canned Commerce Secretary Wilbur Ross’ use of its products in his defense of Trump’s tariffs. The billionaire used a Campbell soup can as a prop, arguing that price increases would be “trivial,” as he appeared on cable news shows. The popular soup maker, echoing similar sentiments from beer and soda companies, said Ross’ argument was missing a few ingredients. “Any new broad-based tariffs on imported tin plate steel — an insufficient amount of which is produced in the U.S. — will result in higher prices on one of the safest and more affordable parts of the food supply,” Campbell told CNBC.