Trade War between European Union and Trump Administration
The European Union is imposing retaliatory tariffs on American businesses in response to Trump administration's tariffs on aluminium and steel products. The EU's measures are targeted at products made in Republican-controlled states, with the aim of pressuring local politicians to influence the White House. Trump argues that tariffs will help bring industries back to the US from overseas. The EU-US trade imbalance has increased under Biden's presidency. Trump's tariff strategy is seen as a response to trade barriers imposed by the EU to protect its internal market.
Key Points
- EU imposing retaliatory tariffs on American products
- Targeting products from Republican-held states
- Trump's strategy of tariffs, tax cuts, and deregulation
- Increasing trade imbalance between EU and US under Biden's presidency
Pros
- Efforts to reshore industries back to the US
- Geopolitical aims to reduce dependencies on antagonistic states
Cons
- Disruption of supply chains
- Increased prices and uncertainty for consumers