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But the threat to slap heavy tariffs on imported cars and parts in the name of US national security faces a barrage of opposition, with everyone from heads of state and Republican lawmakers to average Americans weighing in on the plan.

In response to Mr Trump's tariffs on European steel and aluminium, the EU has imposed tariffs on imports of United States cranberries, orange juice, sweetcorn, peanut butter, bourbon whiskey, cigarettes, cigars, cheroots (a type of thin cigar), cosmetics, motorbikes, boats, jeans, leather footwear, swimwear, underwear and steel products.

The US commerce department is investigating whether imports of automobiles and automotive parts pose a risk to national security. That could push India closer to Southeast Asia and the European Union, further isolating the United States, he argued.

"The rules of global trade, which we have developed over the years hand in hand with our American partners, can not be violated without a reaction from our side", she said.

However, China accused the USA of an act of "extreme pressure and blackmail" and said it would respond with "strong countermeasures".

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A transatlantic trade battle could open a second front in a global trade war, with much at stake: The United States and the European Union trade just over €1 trillion ($1.2 trillion) in goods and services each year.

"If we chose products like Harley-Davidson, peanut butter and bourbon, it's because there are alternatives on the market".

"I think the United States is losing more because it has put tariffs on a very important input which very often it doesn't produce itself", he said.

"The trade that we believe in is built on rules, trust, and reliable partnership", E.U. Commission president Jean-Claude Juncker said Thursday night.

The White House refused to exempt its traditional allies from worldwide tariffs on steel and aluminium, which Trump argues are necessary to protect USA jobs and industry. Trump wrote on Twitter on Friday.

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Trump hit the EU, Canada, and Mexico with tariffs of 25% on steel and 10% on aluminium at the start of June, ending exemptions that had been in place since March. But, he said, the move could hurt India's economic growth as the country diversifies its exports, as well as prompt India "to re-look at USA relations as undependable".

China says will hit back if the latest tariff threats from Trump materialize, while India slaps retaliatory levies on U.S. goods. The tariffs would come into force on August 4.

Economists note that on the whole, the USA and European Union tariffs will not immediately cause great damage to either side's economy.

Japanese vehicle makers accounted for 92,000 jobs in the USA, according to the Japanese Auto Manufacturers Association's annual report.

German vehicle makers employ more than 36,000 workers in the U.S. Another 80,000 work for American suppliers, according to German auto industry group VDA.

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Economists noted that the amount of money involved with India's levies dwarfed in comparison with that of China - U.S. -India trade was $126 billion previous year, while U.S. India and Turkey have already targeted United States products, ranging from rice to autos to sunscreen.