” circle_size=”150″ sharp_corners=”false” image_alignment=”left” number_of_columns=”1″ number_of_stories=”5″ order=”DESC” orderby=”post_title” view=”circles” /]Anamika Dey, editor
Synopsis
- President Trump announced a potential 25% tariff on imports from the European Union, claiming the EU was established to undermine the U.S. and asserting that the U.S. has been exploited in trade.
- The European Union, which had a trade surplus with the U.S. in goods in 2023, responded to Trump’s threats by pledging to retaliate proportionately and emphasized the benefits of the EU for U.S. trade and investment.
- Economists warn that the proposed tariffs could lead to increased consumer prices and inflation in the U.S., while the European Commission highlighted the importance of collaboration over competition between the U.S. and EU.
Detailed
Using the argument that the European Union was founded “to screw” the United States, President Donald Trump of the United States of America threatened to slap tariffs of twenty-five percent on international imports from the European Union.
During the first Cabinet meeting of his second term in office, which took place on Wednesday, President Trump announced that charges assessed against Canada and Mexico will go into effect on April 2. Additionally, he stated that his trade measures will include a tax of 25% on goods originating from the European Union.
Reporters were informed by him that “we will be announcing it very soon.” From a general standpoint, the tariff will be twenty-five percent, and this will apply to automobiles as well as everything else.
He went on to say, “They have really used us in numerous ways… They do not accept our automobiles, and in essence, they do not accept the items that we produce on our farms. They offer a wide variety of denials and explanations. Each and every one of them is acceptable to us.
The ongoing trade deficits of the United States, in which the country purchases more products and services than it exports, are evidence that the president has made it a priority to address what he considers to be unfair trade agreements with a number of the United States’ closest neighbors and trading partners.
Trump asserted, without providing any proof to back up his allegation, that the European Union was established with the intention of undermining the United States.
“I have a deep affection for places throughout Europe. At some point in time, a very long time ago, right? I suppose that I am from that place. … However, the European Union was established with the intention of exploiting the United States of America; this is the reason for its existence, and they have been successful in doing so. However, I am now the president,” he stated.
Building on the post-war sense of European togetherness, the European Union (EU) was founded when the Maastricht Treaty was put into effect in 1993. The EU counts the establishment of an internal market and the achievement of sustainable development as among its goals among its objectives.
The European Union (EU) had a trade surplus of 155.8 billion euros ($159.6 billion) with the United States of America for goods in 2023, according to data provided by the European Commission. However, the EU ran a deficit of 104 billion euros on services. When broken down by product category, the most significant portion of European Union exports to the United States are comprised of machinery and cars. This is followed by chemicals, other manufactured items, and pharmaceutical and therapeutic products.
The imposition of tariffs on goods from the European Union would almost certainly result in increased pricing for consumers in the United States. Economists have already warned about the potential inflationary impact of import charges.
Europe was shaken once more.
The threat of tariffs by President Trump has shook the European Union, which has previously pledged to retaliate to the measures in a “proportionate way.” European markets are heading for a much lower opening, and the threat has rattled the EU.
In response to the statements made by President Trump, the European Commission, which is the executive branch of the European Union, made a commitment to “react firmly and immediately against unjustified barriers to free and fair trade, including for situations in which tariffs are used to challenge legal and non-discriminatory policies.”
Responding to Trump’s assertions regarding the founding of the European Union, the Commission pointed out that the United States has benefited from the EU.
It is true that the European Union is the greatest free market in the world. Also, it has been a blessing for the United States of America. In order to facilitate trade, cut costs for exporters from the United States, and harmonize standards and regulations across 27 countries, the European Union (EU) achieved these goals by establishing a vast and integrated single market. “As a consequence of this, investments made by the United States in Europe yield extremely high returns,” the Commission stated in a statement to CNBC.
In order to “preserve these opportunities for our people and businesses,” the European Union (EU) encouraged the United States to collaborate with it. Not in competition with one another.”
The possibility of tariffs is not new; President Trump has already threatened to impose duties on the European Union and the United Kingdom. Despite this, the leader of the White House has previously indicated that a deal could be worked out with Britain, which has a significantly more balanced commercial relationship with the United States.
Source : CNBC news
