Headline June 27, 2018/ ''' *THE ECONOMIC WAR* '''

''' *THE ECONOMIC WAR* '''

PRESIDENT  DONALD TRUMP  ON FRIDAY  threatened to escalate a trade war with Europe by imposing a 20 percent tariff on all US imports of European Union assembled cars.

Trump posted his threat on Twitter the day European union reprisals took effect against US tariffs on European steel and aluminum. The EU targeted $3.2 billions in American goods exported to the 28-member bloc.

''If those Tariffs and Barriers are not soon broken down and removed, we will be placing a 20%  Tariff on all of their cars coming into the US Build them here!'' he wrote.

A month ago, the administration launched a probe whether auto imports pose a national security threat.

President Trump had pledged not very long ago, to impose tariffs on imports from countries that  Trump had said exploited the United States. Late last month, trump proceeded to infuriate US allies    -from the EU to Canada and Mexico by imposing tariffs of 25 percent on imported steel and 10 percent on aluminum.

President Trump has also started a trade war with China over Beijing's sharp-elbowed  efforts to overtake US technological dominance. China's tactics range from forcing American companies to hand over technology in exchange for access to the Chinese market to outright cyber-theft.

The White House last week announced plans to slap a 25 percent tariffs on 1,100 Chinese goods, worth $50 billion in imports.

Trump would start July 6 by taxing $34 billion worth of products and later add tariffs on additional $16 billion in goods. The Chinese have said they will respond in kind. Trump said he would retaliate against any counterpunch from Beijing by targeting an additional $200 billion if China refused to back down.

All told, the $450 billion in potential tariffs would cover nearly 90 percent of goods China sends to the United States.

The tariffs and threats have begun to take a toll. Steel and Aluminum prices, for example, have shot up and supplies have become scarce.

''Steel pricing is usually relatively stable,'' said AI Rheinnecker, CEO of American piping Products in Chesterfield, Missouri, which distributes steel pipe to numerous industries. Bu  -  ''since April, you can quote something on Monday, and if the customer doesn't buy it right away, you may have to raise the price on Thursday.''

So far, Rheinnecker has managed to pass along the higher costs to his customers. He's not sure how long that will last.

The Commerce Department is allowing companies to request exemptions from the steel and aluminum tariffs - if they can show that the metals they need aren't available from American producers.

The department expected 4,500 requests. But it's been overwhelmed by more than 20,000. This week, it said it has processed just 98 requests so far, approving 42 and denying 56.

The rising tensions and the chaos surrounding the steel and aluminum tariffs are starting to generate pushback on Capital Hill. Senators this week grilled Commerce Secretary Wilbur Ross.

''As you consider these tariffs, know that you are taxing American families, you are putting American jobs at risk, and you are destroying markets - both foreign and domestic - for American businesses of all types, sorts and sizes,'' said Senate Finance Chairman Orrin Hatch, R-Utah.

Economists and trade analysts worry that there may be no way out of  an all-out trade and economic war between the United States and its most vital trading partners.

The Honor and Serving of the latest Global Operational Research on  developed Economies
and Trade War continues.

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