Photo: Depositphotos
US President Donald Trump said that the United States would retaliate against the European Union’s countermeasures in response to Washington’s 25 per cent duties on steel and aluminium.
According to Bloomberg, this increases the risk of further escalation of the global trade war.
What happened?
On 12 March, the US imposed new duties on metal imports, affecting supplies from around the world. The response was immediate countermeasures by the EU and Canada, which began to consider their own restrictions on US goods.
“Of course I’m going to respond,” Trump told reporters at the White House on Wednesday, commenting on Brussels’ reaction.
“The problem is that our country did not respond. Look, the EU was created to take advantage of the United States,” the US president added, without specifying what measures he intends to take.
What does this mean for the economy?
Trump’s decision has drawn sharp criticism from European partners, who are considering mirror duties on US goods, including cars and agricultural products.
This escalation can:
- Increase economic tensions between the US and the EU;
- To complicate Washington’s trade relations with Canada and other partners;
- Negatively affect global financial markets due to increased uncertainty.
What’s next?
The European Union has not yet published a list of possible countermeasures, but Brussels is already signalling that it is not going to give in to US pressure.
Experts predict that if Trump goes ahead with further tariff increases, it could escalate into a full-blown trade war that would hit both the US and European economies.
