>> Europe's car makers look to be the biggest losers from an escalating trade war. Donald Trump says he will impose a 20% tariff on European car imports, unless the EU removes its own tariffs. Build them over here, he tweeted Friday. The US Commerce Department currently investigating whether auto imports pose a national security threat.
Any new tariffs could be imposed when it reports, possibly as early as July. European and US auto shares fell sharply after Trumps tweet, which raises fears of an escalating trade war. In Europe, these have just got more expensive, as Brussels plays it's own hand. US motorbikes among the products hit with 25% tariffs from Friday.
Bourbon whiskey on the list, too. Meanwhile, China could put its own new tariffs on US made cars. Just one catch. Many of those vehicles have a European badge on the hood. Beijing's proposed 25% tax would hit 270,000 US made autos. Worth about $11 billion. $7 billion worth of those vehicles are made by German firms.
Mercedes and BMW both build SUVs in the US for sale to China. On Thursday, Mercedes' parent company, Daimler, said that could take a big toll on its earning. It's one factor prompting the firm to cut it's 2018 profit forecast. With little sign that Washington is about to back down, Europe's auto giants face a lose, lose scenario.
Taxed on cars they ship into the US and taxed on the ones they ship out of the US too.