European Union warns U.S. of almost $300-billion retaliation over auto tariffs

Trump has sparked a global trade conflict by placing or threatening punitive tariffs on hundreds of billions of dollars’ worth of goods from China, Mexico, Canada, and the European Union. The rate is expected to remain unchanged at 1.5 percent.

European carmakers were among those feeling the most pain while, in London, the FTSE 100 was off by more than 1%. The S&P 500 and the Nasdaq were both up 0.1% on Friday.

ASIA’S DAY: Asian markets were overshadowed by weaker than expected Chinese manufacturing data and a softening in Japan’s economic outlook. The Shanghai Composite index tumbled 2.5 percent to 2,775.56 while Australia’s S&P/ASX 200 lost 0.3 percent to 6,177.80. Hong Kong markets were closed for a public holiday.

German Chancellor Angela Merkel will try to prevent her government from collapsing over immigration policy. The CSU leader has apparently offered to resign from the cabinet.

The EU leaders agreed “in substance” on Thursday (28 June) on a set of proposals to improve the World Trade Organisation, which should pave the way for finding common ground with US President Donald Trump and de-escalating the ongoing trade dispute.

It was also reported that BMW has joined Hyundai and General Motors in opposing the Trump administration’s plan to impose tariffs on imported cars, and the automakers have written to the Secretary of Commerce to voice their concerns.

It responded with “rebalancing measures” that hit around €2.8 billion worth of American-made products.

Right now, Canada has already instituted retaliatory tariffs against the U.S.as has the European Union for the tax on imported aluminum and steel.

The commission also underlined that European vehicle companies were important contributors to the USA economy and “well established” there.

The submission said European vehicle companies are “well established” in the United States. These penalties would take effect, Trump has said, if Beijing fails to reform its trade practices and proceeds with retaliatory tariffs.

Mr Trump tweeted on the weekend that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to pump more oil, “maybe up to 2,000,000 barrels”. The Office of the U.S. Trade Representative concluded after an investigation that China’s tactics range from requiring U.S. and other foreign companies to hand over technology in return for access to the vast Chinese market to outright cyber-theft.

USA manufacturing expanded more than forecast last month as a gauge of supplier-delivery times shot up amid robust orders and production, data from the Institute for Supply Management showed on Monday. It fell 21 cents to settle at $73.94 a barrel on Monday.

CURRENCIES: The dollar eased to 110.84 yen from 110.87 yen in late trading Monday. The euro weakened to $1.1643 from $1.1695.