US President Donald Trump on Saturday announced a 30 percent tariff on imports from Mexico and European Union (European Union), which will be effective from August 1. The announcement by the US President has been made after failing to reach an agreement even after a trade talks with their prominent colleagues for several weeks. He gave information in this regard by sharing letters written to Mexico and European Union with his social media handle.
Trump’s move has increased the possibility of trade war further intensified, especially at a time when the European Union is working on a comprehensive trade agreement with its ally America. The 27 -member European Union is now facing huge obstacles in the US markets. Trump’s announcement came after the increase in tariffs on goods coming from Japan, South Korea, Canada and Brazil earlier this week. He has imposed a huge tariff of 50 percent on copper imports from these countries.
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President Donald Trump has described his tariff policy as protecting American industries and increasing domestic revenue. The European Union initially demanded a zero-tariff trade agreement on industrial goods with the US. However, no compromise could be reached even after months of tense talks. Germany has emphasized a quick agreement to protect its industrial area, while countries like France have opposed the US proposal, which they consider unilaterally.
The 27 -member European Union, facing internal division, may now have to be satisfied with an interim agreement, and will have to expect more favorable conditions in the future. Trump’s aggressive stance on trade with other countries has started giving a new look to the treasury of the US government. According to the data released on Friday of the Treasury, the customs recovered by the federal government crossed US $ 100 billion in the financial year till June. This is an important bounce due to the newly imposed tariffs.
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