On July 6 new US tariffs will be applied on a variety of manufactured goods imported from China. China has warned they will immediately retaliate with a 25% countervailing duty on cars imported from the US. China is the largest automobile market in the world, with a rate of growth greater than the USA.


GM, Ford, and BMW AG have complained that the tit-for-tat between the US and China will threaten jobs in their US manufacturing facilities.


Adding to the angst in the automotive industry, President Trump asked on May 23 for an inquiry into the "national security" implications of foreign sourced components of vehicles manufactured in the USA. Foreign content typically may account for 45% to 50% of the costs of a new vehicle.

Toyota USA pointed out that they have 10 US manufacturing plants, and a 25% tariff on imported auto parts would increase the costs of a Toyota Camry by an estimated $1,800.

Meanwhile Trump has suggested a new 20% tariff on cars assembled in Europe, and the EU warned of countervailing duties.


So, it's unanimous. Canada retaliates, China retaliates, EU retaliates, Mexico retaliates.


I recall 3/1/2018 when Donald Trump tweeted, ...trade wars are good, and easy to win.