According to the analysts at the Barclays, there has been an escalation in the global trade conflict with the president of the United States, Donald Trump levying heavy tariffs on the automobile sector of the European Union.
This imposition of the tariffs has the capacity to knock off as much as $75billion from the growth in the upcoming year in the euro-zone.
A team of the Barclays which was led by Francois Cabau, estimated via writings this week that if the President of the United States, Donald Trump imposed a tariff of 25 percent on the imports of the cars of European Union into his country then this will knock off about 0.4 percent points from the growth in the year 2019 and that too from a single currency area.
This will be equal to about $75 billion which will account to the lost in terms of output.
The president has already threatened the country that he will be imposing tariffs of 25 percent on all the automobiles as well their parts that are imported to the United States from trading partners which will include European Union along with Canada. The imports which he specified were ion extract concessions.
Though the president has not taken any steps regarding the same, but it was reported that earlier this month the administration was circulating a report so as to discuss the prospects of the tariffs on the automobiles.
On Saturday, the team of Barclays stated that there has been a direct citation of higher tariffs on the automobiles of the European Union and therefore this remains a threat after the G20 meetings.
The team further added that they have explored scenario in which the increase in the tariffs by the United States on the passenger cars of the European Union range from 2.5 to 25 percent.
Source – Business Insider
