US President Donald Trump openly threatened on Wednesday, March 13, to impose further tariff measures on the European Union in response to the EU's retaliatory actions against US steel and aluminum import tariffs. This trade war has escalated since Trump returned to the White House in January, highlighting his tough stance on international trade imbalances. With the intensifying US-EU confrontation, the relationship between one of the world's largest economic and trade partners may face unprecedented challenges.
The EU swiftly retaliated by initiating retaliatory tariffs.
The U.S. policy of imposing a 25% tariff on imported steel and aluminum officially took effect on Wednesday. The EU immediately announced retaliatory measures, planning to impose retaliatory tariffs on U.S. goods worth a total of 26 billion euros (approximately 28.33 billion U.S. dollars) starting from April.
The President of the European Commission, Ursula von der Leyen, said that the EU's tariff action is to protect local businesses and consumers from the impact of US trade policies. She criticized the Trump administration's tariff measures for not only increasing the burden on businesses and consumers, but also disrupting the global supply chain and potentially threatening economic stability. Von der Leyen emphasized that although the EU's countermeasures are tough, they remain moderate and are willing to negotiate with the United States to seek a solution.
Trump's response: The United States will impose 'equal tariffs'
Facing the EU's retaliatory actions, Trump responded forcefully, threatening to impose 'equivalent tariffs,' which means the US will levy the same tax rate as the EU in retaliation.
During a meeting with Irish Prime Minister Micheál Martin, Trump said, 'Of course, I will respond!' He once again criticized the EU for 'taking advantage of the United States' and believed that the US had been too soft in dealing with this issue in the past. In addition, he also mentioned that Ireland's low corporate tax rate has led to 'huge trade deficits' between the US and the country. According to data from the Central Statistics Office (CSO) of Ireland in 2023, Ireland's trade surplus with the US reached as high as 31 billion euros, showing that the US has been at a long-term disadvantage.
Trump said, "The EU is one of the most hostile and abusive tax and tariff authorities in the world, established solely to take advantage of the United States. It has just imposed a 50% tariff on whiskey, which is disgusting. If this tariff is not lifted immediately, the United States will soon impose a 200% tariff on all wine, champagne, and alcohol products from France and other EU member countries. This would be great for the American wine and champagne business."
Imbalances in trade become the focus, intensifying conflicts between the US and Europe
The issue of trade imbalance has always been one of the main grievances of the Trump administration towards international trading partners. Although he has imposed tariff measures on Mexico, China, and Canada, the European Union has not been a major target until now. However, this time, Trump explicitly pointed the finger at the European Union and threatened to impose a 25% tariff on its imported goods, further escalating tensions.
According to the data of the European Commission, the EU's trade surplus with the United States in goods is 155.8 billion euros in 2023, while the United States enjoys a surplus of 104 billion euros in services trade. The total value of goods and services trade between the two sides reaches 1.6 trillion euros, with machinery, vehicles, and chemicals being the EU's main export items to the United States. If the United States imposes high tariffs, it will inevitably impact these industries and further affect the European economy.
Trade war fears may continue to escalate, putting pressure on the global economy
Since Trump took office in January, trade relations between the US and Europe have gradually deteriorated due to tariff issues. As early as the cabinet meeting on February 26, Trump publicly complained that the EU was 'taking advantage of the US,' accusing the EU of refusing to import American cars and agricultural products while exporting a large number of goods to the US, leading to trade imbalance.
The latest U.S. steel and aluminum tariffs are expected to affect about 26 billion euros in EU exports to the United States. Von der Leyen warned that this would lead to price increases, supply chain disruptions, and even impact the job market. She emphasized that the U.S.-EU trade relationship is one of the most important economic links globally, bringing prosperity and security in the past, and called on both sides to avoid further conflict to prevent greater impact on the global economy.
Currently, the two sides have not yet started formal negotiations, and the market is closely watching whether the Trump administration will further expand the scope of tariffs, even affecting more industries. As the US-EU trade war escalates, global economic uncertainty is also increasing, and businesses and investors are holding their breath, watching for the latest developments in this tariff battle.
This article The US-EU trade war escalated! Trump threatens to retaliate against EU tariffs, threatening to impose a 200% wine tax first appeared on Chain News ABMedia.
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US-EU trade war escalates! Trump threatens to retaliate against EU tariffs, threatens to impose 200% alcohol tax
US President Donald Trump openly threatened on Wednesday, March 13, to impose further tariff measures on the European Union in response to the EU's retaliatory actions against US steel and aluminum import tariffs. This trade war has escalated since Trump returned to the White House in January, highlighting his tough stance on international trade imbalances. With the intensifying US-EU confrontation, the relationship between one of the world's largest economic and trade partners may face unprecedented challenges.
The EU swiftly retaliated by initiating retaliatory tariffs.
The U.S. policy of imposing a 25% tariff on imported steel and aluminum officially took effect on Wednesday. The EU immediately announced retaliatory measures, planning to impose retaliatory tariffs on U.S. goods worth a total of 26 billion euros (approximately 28.33 billion U.S. dollars) starting from April.
The President of the European Commission, Ursula von der Leyen, said that the EU's tariff action is to protect local businesses and consumers from the impact of US trade policies. She criticized the Trump administration's tariff measures for not only increasing the burden on businesses and consumers, but also disrupting the global supply chain and potentially threatening economic stability. Von der Leyen emphasized that although the EU's countermeasures are tough, they remain moderate and are willing to negotiate with the United States to seek a solution.
Trump's response: The United States will impose 'equal tariffs'
Facing the EU's retaliatory actions, Trump responded forcefully, threatening to impose 'equivalent tariffs,' which means the US will levy the same tax rate as the EU in retaliation.
During a meeting with Irish Prime Minister Micheál Martin, Trump said, 'Of course, I will respond!' He once again criticized the EU for 'taking advantage of the United States' and believed that the US had been too soft in dealing with this issue in the past. In addition, he also mentioned that Ireland's low corporate tax rate has led to 'huge trade deficits' between the US and the country. According to data from the Central Statistics Office (CSO) of Ireland in 2023, Ireland's trade surplus with the US reached as high as 31 billion euros, showing that the US has been at a long-term disadvantage.
Trump said, "The EU is one of the most hostile and abusive tax and tariff authorities in the world, established solely to take advantage of the United States. It has just imposed a 50% tariff on whiskey, which is disgusting. If this tariff is not lifted immediately, the United States will soon impose a 200% tariff on all wine, champagne, and alcohol products from France and other EU member countries. This would be great for the American wine and champagne business."
Imbalances in trade become the focus, intensifying conflicts between the US and Europe
The issue of trade imbalance has always been one of the main grievances of the Trump administration towards international trading partners. Although he has imposed tariff measures on Mexico, China, and Canada, the European Union has not been a major target until now. However, this time, Trump explicitly pointed the finger at the European Union and threatened to impose a 25% tariff on its imported goods, further escalating tensions.
According to the data of the European Commission, the EU's trade surplus with the United States in goods is 155.8 billion euros in 2023, while the United States enjoys a surplus of 104 billion euros in services trade. The total value of goods and services trade between the two sides reaches 1.6 trillion euros, with machinery, vehicles, and chemicals being the EU's main export items to the United States. If the United States imposes high tariffs, it will inevitably impact these industries and further affect the European economy.
Trade war fears may continue to escalate, putting pressure on the global economy
Since Trump took office in January, trade relations between the US and Europe have gradually deteriorated due to tariff issues. As early as the cabinet meeting on February 26, Trump publicly complained that the EU was 'taking advantage of the US,' accusing the EU of refusing to import American cars and agricultural products while exporting a large number of goods to the US, leading to trade imbalance.
The latest U.S. steel and aluminum tariffs are expected to affect about 26 billion euros in EU exports to the United States. Von der Leyen warned that this would lead to price increases, supply chain disruptions, and even impact the job market. She emphasized that the U.S.-EU trade relationship is one of the most important economic links globally, bringing prosperity and security in the past, and called on both sides to avoid further conflict to prevent greater impact on the global economy.
Currently, the two sides have not yet started formal negotiations, and the market is closely watching whether the Trump administration will further expand the scope of tariffs, even affecting more industries. As the US-EU trade war escalates, global economic uncertainty is also increasing, and businesses and investors are holding their breath, watching for the latest developments in this tariff battle.
This article The US-EU trade war escalated! Trump threatens to retaliate against EU tariffs, threatening to impose a 200% wine tax first appeared on Chain News ABMedia.