Angela Merkel Warns Trump Auto Tariffs Could Spark Trade War

July 4, 2018 Share Print 0

German Chancellor Angela Merkel has warned the Trump administration that hitting auto imports with new tariffs would have dire consequences.

”We now have tariffs on aluminum and steel and we have a discussion that is far more serious,” Merkel told German lawmakers on Wednesday. “This is taking on the contours of a trade conflict — I don’t want to use words that go any further.

It’s worth every effort to try and defuse this so that this conflict does not become a war.’’

President Donald Trump has threatened to place a 20% tariff on all European cars coming to the United States if the European Union doesn’t remove its own trade barriers.

Targeting cars would dramatically raise the stakes in the spat between Europe and its biggest trading partner. EU-US trade in goods and services is worth more than €1 trillion euros ($1.2 trillion) each year.

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.