Asian markets tumble as China-US trade tensions rise

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"There is, as a effect of the tariffs that the United States is putting in place, a wave of retaliation that's coming against American exports" from trading partners like Canada to the tune of $75 billion, Murphy said.

China, Japan, and South Korea all reported that their export orders eased back in June as trade tensions continue with the US. Any new USA tariffs would likely lead to further retaliatory measures from China and the EU.

Last Friday, the European Union said that tariffs on cars and vehicle parts were unjustifiable and did not make economic sense, according to a 10-page report sent to the United States Commerce Department.

The new campaign, detailed first to Reuters, is an aggressive effort by the business lobbying giant.

The European Union on Monday slammed the Trump administration for considering higher tariffs on auto imports, saying they could lead to global retaliation against some $300 billion in USA goods.

"The administration is threatening to undermine the economic progress it worked so hard to achieve", said Chamber President Tom Donohue in a statement to Reuters.

In addition, higher tariffs on components imported to the United States would make other production locations outside the country more competitive, BMW pointed out.

Although Trump has previously been persuaded to back off trade threats based on the fact that they would hurt states that supported him in the 2016 presidential election, he has taken a more aggressive tack in recent months.

It also argued that tariffs on cars and vehicle parts could hurt economic growth in North America, with an estimated initial $US13-14 billion hit on United States gross domestic product.

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"I think the European Union - we're going to be meeting with them fairly soon", Trump said.

Its ironic that the protectionist concept of trade tariffs will essentially threaten jobs in the U.S., as usual in any conflict, trade or otherwise, there is always "collateral damage".

ANZ economists said they will be looking out for comments from the central bank on demand for loans domestically and rising global risks.

She said the European Union can not lift its auto tariffs for the U.S. or it would have to do so for the rest of the world, and "there's no way" European Union member countries would agree to that.

Motorcycle maker Harley-Davidson said earlier this week that new tariffs imposed by Europe on certain manufactured goods will cause a "tremendous cost increase" that the company will have to shoulder. Trump slammed the company's move, saying it was tantamount to surrender, and threatened punitive taxes.

Almost $300 billion of United States exports could be hit by retaliatory tariffs if the Trump administration decides to penalize automobile imports from around the world, the European Union says.

"At some point, this tariff impact will be felt by customers", the company said in a filing with the US Commerce Department. Trade showdown: The global trade clash is heating up this week.

General Motors also warned that proposed tariffs on foreign cars and parts could result in fewer cars being built on USA soil.

"Simply put, tariffs are a tax on American consumers and businesses", the U.S. Chamber of Commerce said on its website.

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