Donald Trump intensifies trade war with threat of 30 per cent tariffs on EU, Mexico
The deadline for August 1 gives the time to negotiate agreements that can reduce tariffs threatened to targeted countries. Some investors and economists also recorded Trump’s model.
He’s withdrawing tariff threats.
The increase in the letters showed that Trump returned to the aggressive trade stance in April, and the White House announced a series of mutual tariffs against trade partners who sent the rolling markets before delaying the application.
‘Unfair treatment’
However, when the stock market has recently reached record levels and the US economy is still flexible, Trump does not show signs of slowing down the trade war.
In April, he promised to use a 90 -day delay to make a new trade agreement, but he only made frameworks with England, China and Vietnam. The EU hoped to make a comprehensive trade agreement with the US for the 27 -country block.
Trump’s letter to the EU included Europe’s request to drop its own tariffs.
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“The European Union will allow the United States to allow the United States to have a full, open market access to the United States without accusing any tariffs to reduce the major trade deficit.”
Von der leyen said that 30 percent of tariffs will disrupt the interchangeable supply chains to the loss of businesses, consumers and patients on both sides of the Atlantic ”.
In addition, while the EU continued to work for a trade agreement, he said, “If necessary, it will take all the necessary steps to protect the interests of the EU, including the adoption of proportional measures”.
Mexican Ministry of Economy said that the US will send a letter during a meeting with US officials on Friday on Saturday.
In the statement of the Ministry, he said, ik We stated that there was an unjust treatment on the round table and that we did not agree with the same. ”
Lower ratio of Mexico than Canada
The proposed tariff level of Mexico is less than 35 percent of Canada, and although government data shows the amount of drugs seized on the Mexican border, both letters refer to Fentanyl flows.
It is significantly higher than the Canadian border.
“Mexico’s what Mexico does, Mexico still did not stop the cartels trying to turn the entire North America into a playground, Tr Trump said.
China is the main source of chemicals used to perform opioid fentanyl. According to the US officials, only 0.2 percent of all phenomenals seized in the United States come from all over Canada
The border is caused by the majority of the US-Mexico border.
Mexico sends more than 80 percent of its total exported goods to the United States and became the best US commercial partner in 2023 in 2023 with the northern neighbor.
The EU initially hoped to make a comprehensive trade agreement, but he had recently led to a broader framework agreement similar to a British, which had recently reduced his ambitions and left details to be negotiated.
While making a quick agreement to protect the German plant, other EU members such as France should not make an unilateral agreement under US conditions.
Bernd Lange, President of the European Parliamentary Committee of Trade Committee, said Brussels should take counter -measures as soon as possible on Monday. “A slap for these negotiations. This is not a way to cope with a trade partner, Lan Lange told Reuters.
Jacob Funk Kirkegaard, a senior member of Brussels -based thinking tank Bruegel, said Trump’s letter increases the risk of retaliation movements by the EU and China, similar to the exacerbation surrounding the financial markets between the US and China.
“The US and China tariffs came together and came back again. Not until the end, but still went down together,” he said.
Since Trump’s return to the White House, it has started to produce tens of billions of dollars a month with a new income for the US government. According to US Treasury data, US Customs Duties revenue exceeded US $ 100 billion until June.
Tariffs also forced diplomatic relations with the closest US partners.
Japanese Prime Minister Shigeru Ishiba said last week Japan should reduce its dependence on the United States. The struggle against the tariffs asked Canada and some European allies to re -examine his security addiction to Washington, and some wanted to buy non -US weapons systems.
