Former US President Donald Trump is known for his aggressive business policies. After coming to power, he made major changes in economic policies against many countries. Especially products imported from Mexico, Canada and China were huge tariffs. He imposed 25% tariff on goods coming from Mexico and Canada and 10% additional duty on imported goods from China. But his move did not stop here – now he has announced a tariff on the European Union (EU) as well.
Preparation to impose tariffs on European Union
Donald Trump said in a statement on Sunday that the US has been suffering a trade deficit from the European Union for a long time. He says that European countries have taken advantage of America for years, but now it will not be allowed to happen.
Trump said, “We are going to put tariffs on the European Union because they have harmed us. I can’t tell the date, but it will happen soon. “
According to Trump, the US has a trade deficit with 27 countries and this step is being taken to eliminate this imbalance.
America’s aggressive trade policy and its impact
This decision of Trump administration can prove to be a major setback for global trade. Some of the major effects of this US policy may be the following:
- Inflation will increase: Experts believe that increasing tariffs in the US will make imported goods expensive, which will increase the burden on common consumers.
- Impact on American companies: There are many companies in the US that depend on other countries for raw materials. Increasing tariffs will also increase their production costs.
- Effect on international trade: When America tariffs a country, in return, that country can also increase the fee against America, which can lead to a situation of trade war.
European Union’s response
The European Union (EU) has strongly opposed this decision. European officials clarified that if the US imposes a business ban against them, they will also take retaliation.
The EU spokesman said, “If America imposes a tariff on us, then we will also decide accordingly and retaliate against America.”
Military assistance and defense budget issue
Trump also made a big statement about the security of European countries. He says that as long as the defense of Europe is dependent on America, they will have to buy more weapons for their safety. He suggested that European countries should increase their defense budget and reduce dependence on America.
What will happen next?
Trump’s policies can bring both advantages and disadvantages to the US. However, it will be interesting to see how the European Union and other affected countries react to it. If this trade war is prolonged, it can also affect the global economy.
