Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

France-EU Combined Forces Against US Tariffs


July, 09 2018
watermark Economic news

According to the French government yesterday, the United States should anticipate combined forces from Europe for retaliation in increasing tariffs as Germany indicate signs open for negotiations. While Chancellor Angela Merkel stated on Thursday that she supports the reduction of EU levies on imported American vehicles, considering that the strong car industry of Germany is facing threats from the higher US tariffs.


US President Donald Trump imposed 25 percent tariffs on steel from  Canada, EU, and Mexico and 10 percent on aluminum earlier last month, which further ended exemptions levied since March. The tensions had escalated in June because Trump also threatened to place 20 percent import tariffs on every European-made vehicles, which might reverse the present business model for the car industry in the U.S.


Washington levied 2.5 percent tariff on imported EU passenger vehicles and 25 percent duties for imported pickup trucks, while the European Union require 10 percent tariffs for every imported cars from the US. With the rules of the World Trade Organization, the EU is not allowed to lower down import tariffs for US-assembled cars because this would apply to all WTO members.


However, French car manufacturers would likely be slightly affected the American duties because of its little exposure towards the US market. Also, France is worried about the possible stiff competition with the Asian manufacturers if EU tariffs were decreased.



Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.