US President Donald Trump has threatened to put more tariffs on European Union goods, which has intensified the possibility of increasing global trade war. Whereas the leading American business partners said that they would respond to trade barriers already imposed by the US President.
According to a report by Reuters, Trump said that if the European Union executes his plan to reply on some American goods next month, he will impose additional fines. Whatever fee they take from us, we will collect them from them.
Disappointment
By emphasizing the tariff, Trump has shook the trust of investors, consumers and business world and has increased the possibility of recession. He has also spoiled the relationship with Canada by repeatedly threatening to join the neighboring country.
What did Canada say?
Canada, the largest foreign supplier of steel and aluminum to the US, has announced 25 % counter-tariffs on these metals as well as computer, sports equipment and other products, which cost $ 20 billion. Canada has already imposed a tariff of the same amount on American goods in response to the tariff by Trump.
Canadian Finance Minister Dominic Labtle said, “When our prestigious steel and aluminum industries are being targeted improperly, we will not sit quietly.”
The central bank of Canada has also cut interest rates for the preparation of economic turmoil.
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Trump’s move to increase security for American steel and aluminum producers has restored an effective tariff of 25 per cent on all imports and fees have been implemented on hundreds of downstream products from nut-bolt to bulldozer blade and soda can.
US Commerce Secretary Howard Lutnik said that Trump will also implement trade security on copper.
According to a report by Reuters, the survey found that 57 percent of American citizens feel that Trump is very uncertain in trying to move the US economy and 70 percent of Americans feel that purchases from tariffs will become more expensive.