Trump makes veiled WTO threat after EU warning on car tariffs

[webfact]

Trump makes veiled WTO threat after EU warning on car tariffs

By Jeff Mason and Jan Strupczewski

 

U.S. President Donald Trump meets with Dutch Prime Minister Mark Rutte in the Oval Office at the White House in Washington, U.S., July 2, 2018. REUTERS/Leah Millis

 

WASHINGTON/BRUSSELS (Reuters) - U.S. President Donald Trump warned the World Trade Organization on Monday that "we'll be doing something" if the United States is not treated properly, just hours after the European Union said that U.S. automotive tariffs would hurt its own vehicle industry and prompt retaliation.

 

Trump, speaking to reporters during a meeting with Dutch Prime Minister Mark Rutte at the White House, said, "The WTO has treated the United States very, very badly and I hope they change their ways."

 

His comments came after the Axios news website reported that Trump's administration has drafted proposed legislation that would allow Trump to raise tariffs at will and negotiate special tariff rates with specific countries -- two basic violations of WTO rules.

 

The United States has "a big disadvantage with the WTO. And we're not planning anything now, but if they don't treat us properly, we'll be doing something," Trump said, without elaborating.

 

Last week, a source familiar with Trump's thinking told Reuters that the president has privately expressed a desire to quit the WTO, but that it was not a serious proposal.

 

Later on Monday, White House spokeswoman Sarah Sanders said Trump was focused on fixing problems in global trade, not on leaving the trade organization that has been a foundation of the postwar global trading system.

 

"Right now he'd like to see the system get fixed, and that's what he's focused on doing," Sanders said. "He's been clear that he has concerns, that there are a number of aspects that he doesn't believe are fair. And China and other countries have used the WTO to their own advantage. We're focused on fixing the system."

   

U.S., EU TRADE TALKS?

During his meeting with Rutte, Trump also said that his administration would be meeting with EU officials to "work something out" on trade. The United States has imposed tariffs on European steel and aluminium imports and is conducting another national security study that could lead to tariffs on autos and auto parts.

 

"I think the E.U. -- we're going to be meeting with them fairly soon, Trump said. "They want to see if they can work something out, and that'll be good, and if we do work it out, that'll be positive, and if we don't, it'll be positive also, because we'll just think about those cars that pour in here, and we'll do something, right?"

 

A spokeswoman for the U.S. Trade Representative's office could not be immediately reached for comment on further details about such talks.

 

The EU on Friday submitted comments warning the U.S. Commerce Department that U.S. import tariffs on cars and car parts were unjustifiable and would harm America's automotive industry and likely lead to counter-measures by its trading partners on $294 billion (£223.7 billion) of U.S. exports.

 

The Commerce Department launched its investigation, on grounds of national security, on May 23 under orders from Trump, who has frequently complained about the EU's 10 percent car tariff being four times that of the United States, apart from the 25 percent U.S. levy on pickup trucks.

 

Trump said last week that the government would complete its study soon and suggested the United States would take action, having earlier threatened to impose a 20 percent tariff on all EU-assembled cars.

 

The European Commission, the EU executive body that handles trade for the bloc, said on Monday it was trying to convince its U.S. counterparts that imposing such tariffs would be a mistake.

 

"We'll spare no effort, be it at the technical or political level, to prevent this from happening," a spokesman for the commission told reporters, adding that commission President Jean-Claude Juncker's trip to Washington later this month would seek to stop any new U.S. tariffs.

 

The EU exported 37.4 billion euros ($43.6 billion) of cars to the United States in 2017, while 6.2 billion euros worth of cars went the other way.

 

In its submission, the EU said EU companies make close to 2.9 million cars in the United States, supporting 120,000 jobs, or 420,000 if car dealerships and car parts retailers are included.

 

Imports had not shown a dramatic increase in recent years, it said, and had grown largely alongside overall expansion of the U.S. car market, with increased demand that could not be met by domestic production.

 

The submission said that tariffs on cars and car parts could undermine U.S. auto production by imposing higher costs on U.S. manufacturers. The EU calculated that a 25 percent tariff would have an initial $13 billion-$14 billion negative impact on U.S. gross domestic product with no improvement to the country's current account balance.

 

The trade group representing Detroit automakers General Motors Co, Ford Motor Co and Fiat Chrysler, also warned the Commerce Department that a 25 percent import tariff on autos and parts would lead to a total new tax burden of $90 billion annually when combined with the steel and aluminium tariffs.

 

"Imposing tariffs will increase costs for consumers, lessen consumer choice, lower consumer demand, reduce car and light truck production and sales, lower investment levels, and lead to job losses in the U.S. auto sector," Matt Blunt, president of the American Automotive Policy Council, said in a statement.

 

(Reporting by Jan Strupczewski and Jeff Mason; Additional reporting by David Lawder; Writing by David Lawder, Philip Blenkinsop and Robert-Jan Bartunek; Editing by Alison Williams and Leslie Adler)

 

-- © Copyright Reuters 2018-07-03

[edwinchester]

What moron said "trade wars are good and easy to win"?

Edited July 3, 2018 by edwinchester

[than]

22 minutes ago, edwinchester said:

What moron said "trade wars are good and easy to win"?

Trump, because he think he was the master of the world

 

his motto "Trump think (or he try to think, very difficult for a brainless), the world do" ?

[Redline]

He will make America irrelevant yet.  Now even allies can’t trust the country.  Everyone will now look for other alliances and workarounds.  Make America Irrelevant is the new slogan

[DoctorG]

I am sure Trump has better qualified economic advisors than we "experts" here on TVF.

[Chomper Higgot]

Is this the same WTO the UK’s Brexiteers are planning to fall back on when they give up membership of the world’s largest developed trading bloc? 

[IAMHERE]

The USA can not keep losing money to overseas nations, the well of money is not bottomless.

[oobar]

19 minutes ago, DoctorG said:

I am sure Trump has better qualified economic advisors than we "experts" here on TVF.

Wouldn't bet on it.

Edited July 3, 2018 by oobar

[Morch]

42 minutes ago, DoctorG said:

I am sure Trump has better qualified economic advisors than we "experts" here on TVF.

 

Even so, it's pretty irrelevant if the President isn't much into heeding advice.

[Enoon]

 

So this is the way it ends for America?

 

Didn't think of that one.

 

That old devil history likes to play tricks doesn't he?

 

 

Edited July 3, 2018 by Enoon

[car720]

I think it is the greatest cumupance of all time.

How the mighty have fallen.

[johnmcc6]

3 hours ago, Redline said:

He will make America irrelevant yet.  Now even allies can’t trust the country.  Everyone will now look for other alliances and workarounds.  Make America Irrelevant is the new slogan

It must really annoy the liberals who have nothing to offer except snarky anti Trump  comments The rest of us enjoy the constant winning.

[FritsSikkink]

2 hours ago, DoctorG said:

I am sure Trump has better qualified economic advisors than we "experts" here on TVF.

the problem is he never listens to anyone or thinks he knows better.

[bristolboy]

2 hours ago, DoctorG said:

I am sure Trump has better qualified economic advisors than we "experts" here on TVF.

Like Larry Kudlow who said in december 2007 that there was no recession coming.

"Or on January 16, 2008, when he declared: “anks are taking significant steps to repair their balance sheets. Even though some people might not be happy with the speed, the reality is things are improving.”

https://www.vanityfair.com/news/2018/03/tv-pundit-who-blew-the-financial-crisis-could-be-trumps-next-gary-cohn

 

Who to this day says tax cuts pay for themselves even though they never have

And there's this:

Larry Kudlow wrong about deficits falling rapidly under Donald Trump

The economy under President Donald Trump, Kudlow said on June 29, "is throwing out enormous amounts of new tax revenues. As the economy gears up, more people working, better jobs and careers -- those revenues come rolling in, and the deficit, which is one of the other criticisms (of Trump’s economic policy), is coming down, and it’s coming down rapidly. Growth solves a lot of problems."

http://www.politifact.com/truth-o-meter/statements/2018/jul/02/larry-kudlow/larry-kudlow-wrong-about-deficits-falling-rapidly-/

 

[BuaBS]

33 minutes ago, johnmcc6 said:

The Chinese currency just tanked. They are not near as healthy as some would have you believe.

The Chinese devalued the Yuan , to compensate for some of the tarifs.

[dorayme]

40 minutes ago, johnmcc6 said:

It must really annoy the liberals who have nothing to offer except snarky anti Trump  comments The rest of us enjoy the constant winning.

It does not seem like we are winning anything. It looks like the USA is going down the tubes.

[bristolboy]

3 minutes ago, BuaBS said:

The Chinese devalued the Yuan , to compensate for some of the tarifs.

And if that's true, that's an argument against their effectiveness, isn't it?

 

[BuaBS]

2 minutes ago, bristolboy said:

And if that's true, that's an argument against their effectiveness, isn't it?

 

Higher tarifs then . It's a trade war after all.

[bristolboy]

10 minutes ago, BuaBS said:

Higher tarifs then . It's a trade war after all.

And higher domestic prices. Try to remember that the current strong economy actually isn't strong at all for nonsupervisory workers in the private sector. Their hourly wages actually declined slightly in the past year.

For the biggest group of American workers, wages aren’t just flat. They’re falling.

 

The average hourly wage paid to a key group of American workers has fallen from last year when accounting for inflation, as an economy that appears strong by several measures continues to fail to create bigger paychecks, the federal government said Tuesday.

For workers in “production and nonsupervisory” positions, the value of the average paycheck has declined in the past year. For those workers, average “real wages” — a measure of pay that takes inflation into account — fell from $22.62 in May 2017 to $22.59 in May 2018, the Bureau of Labor Statistics said.

The group accounts for about four-fifths of the privately employed workers in America, according to BLS.

https://www.washingtonpost.com/news/wonk/wp/2018/06/15/for-the-biggest-group-of-american-workers-wages-arent-just-flat-theyre-falling/?utm_term=.b3c6eb8c5836

[Jonnapat]

4 hours ago, Redline said:

He will make America irrelevant yet.  Now even allies can’t trust the country.  Everyone will now look for other alliances and workarounds.  Make America Irrelevant is the new slogan

Roll it out

 

4 hours ago, DoctorG said:

I am sure Trump has better qualified economic advisors than we "experts" here on TVF.

As things stand at present I very much doubt that 

[Chomper Higgot]

Trump’s trade wars and offering American workers ‘easy fixes’ with promises of jobs returning to the US are a distraction, worse still a pitiless lie.

 

Automation and AI are about to wipe out millions of jobs.

 

A President who is working for ordinary Americans would address that challenge and how best to prepare America to face it.

 

As it is, automation and AI will further enrich the hyper wealthy and make millions of ordinary working Americans surplus to requirements.

 

What will that lead to?

[The Theory]

“We count the chickens by the end of falls.”

We will see, how this game will be played and who will be the winner, but till then he still has more than 2 years. And you never know he shall win the 2nd term.

[Tug]

Better stick with locking up toddlers Donald they can’t fight back to think this trator knows more than anyone else is joke all he is doing is Putin’s bidding weaken the USA and Europe we will see a stabbing of allies at NATO and a suck up to his idol Putin no one wins trade wars we will all lose with this clown many wrecked lives coming 

[metisdead]

A post containing derogatory slur comment toward Americans has been removed as well as a reply:

 

 

11) You will not post slurs, degrading or overly negative comments directed towards Thailand, specific locations, Thai institutions such as the judicial or law enforcement system, Thai culture, Thai people or any other group on the basis of race, nationality, religion, gender or sexual orientation.
 

[Srikcir]

11 hours ago, webfact said:

U.S. President Donald Trump warned the World Trade Organization on Monday that "we'll be doing something" if the United States is not treated properly

Since the WTO began regulating international trade in 1995, US complaints to the WTO have won about 90% of the time. https://www.factcheck.org/2017/10/trump-wrong-wto-record/

How is the US not being treated "properly?"

See Economist Ben Stein on Trump leaving WTO.

 

[Srikcir]

11 hours ago, webfact said:

Last week, a source familiar with Trump's thinking told Reuters that the president has privately expressed a desire to quit the WTO, but that it was not a serious proposal.

Oh, Trump is very serious.

The Trump Administration Drafted a Bill That Basically Pulls the U.S. Out of the WTO. Here's What It Says

http://fortune.com/2018/07/02/trump-wto-exit-bill-trade-agreements/

Trump doesn't want WTO; he wants TKO.

[Opl]

" The EU is possibly as bad as China, just smaller. It is terrible what they do to us, Mr Trump told Maria Bartiromo in an interview broadcast during her show Sunday Morning Futures."

https://www.independent.co.uk/news/world/americas/us-politics/trump-trade-war-tariffs-latest-eu-china-cars-germany-scotland-a8425721.html

 

" China wants the European Union to stand with Beijing against Washington, to take sides,” said one European diplomat. “We won’t do it and we have told them that. Trump has split the West, and China is seeking to capitalize on that. It was never comfortable with the West being one bloc,” said a European official involved in EU-China diplomacy. ” 

https://www.reuters.com/article/us-usa-trade-china-eu-exclusive/exclusive-china-presses-europe-for-anti-u-s-alliance-on-trade-idUSKBN1JT1KT

 

Edited July 3, 2018 by Opl

[Ulic]

While I do think Trump is a dufus, I am wondering why the tariffs on cars going to the EU

are four times higher than cars coming from the EU to the USA? Was there some other

trade-off on something else. I do think the steel and aluminum tariffs are total BS but

on cars back and forth I am left scratching my head. 

[bristolboy]

4 minutes ago, Ulic said:

While I do think Trump is a dufus, I am wondering why the tariffs on cars going to the EU

are four times higher than cars coming from the EU to the USA? Was there some other

trade-off on something else. I do think the steel and aluminum tariffs are total BS but

on cars back and forth I am left scratching my head. 

You think Trump is being sincere about this?

"The Trump administration may not be willing to play ball. Europe's top trade official said she offered to scrap the bloc's 10% auto tariffs during negotiations over metals tariffs, but the United States declined to engage."

http://money.cnn.com/2018/06/25/news/economy/europe-auto-tariffs-retaliation-trump/index.html

[bristolboy]

7 hours ago, johnmcc6 said:

It must really annoy the liberals who have nothing to offer except snarky anti Trump  comments The rest of us enjoy the constant winning.

Says the author of a snarky comment devoid of any substance at all. You gotta get to work on that self-awareness thing.