Beijing has threatened fresh taxes on 106 U.S. produced goods. China's move is viewed as a response to President Donald Trump's list of Chinese imports that the U.S. is taking aim at. China already has a 25 percent tax on all globally imported cars and is now threatening an additional 25 percent hike for U.S.-built vehicles.
Analysts at investment firm Evercore ISI said Wednesday that a "blunt conclusion" was that a 25 percent additional auto tariff would generate a $1.73 billion impact this year on German auto firms BMW and Mercedes owner, Daimler. Thus, the current trade spat looks to be drawing in the top three of the world's largest economies: the U.S., China and now the European Union.