European exporters shift trade to avoid higher US tariffs

European governments have criticized President Donald Trump’s approach but have resisted Chinese efforts to recruit them as allies in their dispute.

Tariffs are a “dangerous and very blunt instrument,” Harborn said.

“We share the concerns expressed by the American side,” he said. “But there are better and less risky ways to deal with these problems.”

Also Tuesday, China stepped up action against some U.S. goods by announcing anti-dumping duties raw materials used in making optical fibers.

Optical fiber preforms from the United States and Japan will face additional duties of 37.9 to 78.2 per cent for five years, the Ministry of Commerce announced.

Chinese leaders have emphasized the benefits to foreign companies from trading with the world’s second-largest economy in an effort to deflect pressure to change industrial plans communist leaders see as a route to prosperity and global influence.

On Monday, Chinese and German companies including BASF and Volkswagen signed business deals worth 20 billion euros ($23.6 billion) during a visit to Berlin by China’s No. 2 leader, Premier Li Keqiang.

Harborn said a European supplier of environmental technology believed it might have been awarded a Chinese government contract ahead of an American competitor due to its non-U.S. status.

Also Monday, German automaker BMW AG said it would raise prices on U.S.-built SUVs exported China due to higher tariffs.

Beijing’s increases include an additional 25 per cent tariff on cars imported from the United States, raising the total charge to 40 per cent.

BMW exports SUVs from a factory in Spartanburg, South Carolina, that employs 10,000 people.

Joe McDonald, The Associated Press

by Canadian Press

European exporters shift trade to avoid higher US tariffs

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