Back in May, the U.S. launched a national security probe Section 232 specifically relevant to imported cars. Trump used the same law to impose massive steel and aluminum tariffs on long-term trading partners and the World Trade Organization warned that a similar tactic on the automotive industry might “seriously disrupt the wold marker and the WTO system, given the importance of cars to world trade.
Now, per Reuters, over 40 members of the World Trade Organization — including all 28 European Union nations, Russia, China, Japan and India — approached the international body about the fallout of potential Trump administration tariffs against foreign automobiles.
As China and Europe are all facing hefty tariffs from the United States, China is making overtures to the European Union to join it in putting out a joint-statement against the U.S. prior to the Sino-European summit in Beijing, which will take place mid-July. To date, the EU — the world’s largest trading bloc — has not given any indication it will embrace uniting with China against the U.S. in this trade dispute. Instead the EU hopes to work out a multilateral trading system with China.
But the heat isn’t just coming from foreign nations. It has famously trickled down to one of America’s signature automotive brands: Harley-Davidson. Following the tariff war Trump initiated, Harley-Davidson made an announcement stating that, because the new tariffs would increase the cost of each bike by $2,200, the company would move some production overseas.
Additionally, The U.S. Chamber of Commerce launched a new lobbying campaign to illustrate the ways that the Trump administration’s tariffs can hurt every state in the nation economically.
This goes to prove once again that stacking a presidential cabinet via cronyism is nepotism makes for bad policy. Really bad policy. Though Trump’s underlings have an obscene combined net worth, they know absolutely nothing about economics.