If the American duties are maintained, enlarged or something else happens, then European companies will definitely feel it. And since they feel, it certainly Poland, which is in this great supply chain, will definitely suffer – said Jakub Faryś, president of the Polish Association of Automotive Industry (PZPM).
On Tuesday, during an online conference, Fleet Spring Faryś raised the issues of the United States and the European Union commercial policy in the context of customs. – The trouble is that we (European Union – ed.) We export less than a million cars to the American market – he said.
– one of the European companies that first produces cars in USA Sended to Europe, but at the same time sends European vehicles to the American market, it calculated that if the duties are maintained, the losses of this company will amount to about one billion euros – he added.
As he explained, it will happen because “the cars of this European company produced in the United States entering Europe will be saved by the European Union, and those produced in Europe, sent to the United States, will be lied there.” “Therefore, there is one big mess,” he said.
The trade war may affect Poland
The Faryś pointed out that the duties of the US President Donald Trump They include the import of steel and aluminum products, which is also of great value.
– And in short, at the moment we have a very big mess, a very big problem. If these duties were maintained, they would be enlarged or anything else happens, so European companies will definitely feel it – said the president of PZPM.
– If European companies feel it, it is certainly Poland as a country that is in this large supply chain, it is in this body, which we call a car, which we call the car industry, will definitely suffer. To what extent? Nobody knows this today, but it will definitely be a big problem for Poland – he noted.
The President of PZPM reminded that retaliation duties are an inseparable element of commercial wars. – And it certainly will not be a profit for the American consumer, because if customs tariffs appear, it is completely logical that the price of a given product increases. If the price increases, customers who want to buy it will have to pay more or change purchasing preferences, which is sometimes not easy – he concluded.
American duties on the import of steel and aluminum will affect the export of goods worth around EUR 26 billion, which is about 5 percent. total export.
Trade of goods and services between the EU and the USAPZPM
Trump's duties on the EU and retaliation
Last week, 25 %, American duties on steel and aluminum came into force. According to the decision of the US President Donald Trump, they concern imports from all countries without exception.
The introduced tariffs will affect the most Canada, Mexico, BrazilEU, JapanGreat Britain and South Korea, i.e. large exporters who were completely or partially excluded from duties announced in 2018.
In response to duties imposed on Wednesday by the US on foreign steel and aluminum European Commission informed about the imposition of retaliation duties by the EU to goods from this country worth EUR 26 billion.
On Thursday, Trump threatened the retaliation duties in the amount of 200 percent. for EU alcohol products in response to earlier retaliation duties of the EU towards the USA.
Source of the main photo: Humphery/Shutterstock