In the start of this week, American president threatened to impose an 11 billion dollar of tariffs on the products imported from the Europe which included wine, cheese, and planes.
Although this threat won’t escalate the tension of trade into another significant trade war, it might aggravate the already tensed trade negotiations between the United States and the European Union.
Donald Trump tweeted: “The EU has taken advantage of the US on trade for many years. It will soon stop.”
European Union didn’t take time to respond to the Last year’s Trump decision to blow tariffs on Europe’s aluminum and steel’s export to the United States by imposing revengeful tariffs on the US goods by $3.2 billion.
Trump said: “When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted.”
The spokesman at Airbus, Rainer Ohler termed the amount which the US announced as ‘largely exaggerate’. He said: “All this is leading to unnecessary trade tensions and shows the only reasonable solution in this long trade dispute is a settlement.”
Making use of the national security argument for imposing tariffs that are used to influence the trade concessions along with the promise that the tariffs will be withdrawn immediately after any favorable deal catches the US, totally demolishes the argument.
Europe has retaliated by imposing taxes on American Products inclusive of bourbon whiskey, vehicles like motorcycles and clothes like jeans.
Donald Trump has misused the imposing of tariffs or just by threating to impose the tariffs have ruined the relationship with trade partners of Washington including China, Europe, and Mexico. This is basically a scheme that has made the global markets agitated and worried about the impact on the growth of the global economy.