Donald Trump announced the imposition of duties on the European Union. There's a trade war going on with Brussels. The president of the United States says that the EU is "unfair" towards American companies and accuses it of blocking access to its market. If customs enter into force, they can affect intercontinental trade and tighten relations between Washington and Brussels.
Three fast facts:
- Trump announced a "strong" action against the EU, claiming that America has a $300 billion trade deficit with it.
- The fresh duties would include cars and agricultural products imported from Europe.
- The European Union has so far avoided open trade confrontation with the US, but can respond with its own sanctions.
Trump threatens the European Union with fresh duties. Trade war on the horizon?
During his gathering with journalists, Donald Trump announced that he would impose duties on products imported from the European Union. In his opinion, the Community is blocking access by American companies to its market, while the US is beginning up to European goods.
They don't take our cars, they don't want our agricultural products, they barely buy anything from us. And we take everything from them. This is unacceptable," Trump said.
The president stressed that the United States has a immense trade deficit with the EU, up to $300 billion a year. It argues that this situation is unacceptable and that its administration will take action to change it.
European economies at risk
If Trump actually introduces fresh duties, this could mean serious problems for European exporters. Germany and France, which export immense amounts of cars and agricultural products to the US, can be peculiarly affected.
The European Union has so far tried to avoid the escalation of the trade conflict with Washington. However, Trump's possible actions can force Brussels to respond.
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How will the European Union react?
European leaders have not yet officially responded to Trump's announcements, but different scenarios are possible. In the past, the EU has applied a "waiting and negotiating" strategy, but it can now search retaliation.
One possible step would be to impose their own duties on American products, specified as technological or agricultural goods. The EU has previously applied specified a solution to the US in consequence to Trump's customs policy.
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