Reuters: Trump Threatens 30% Tariffs, Full Trade War Between US, EU and Mexico Looms
Reuters reported on July 12 that US President Trump threatened to impose a full 30% tariff on imports from the EU and Mexico on August 1, which would escalate global trade tensions and risk a full-scale trade war. This comes after weeks of failed negotiations, and Trump announced this decision via social media to EU Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum. The new tariffs will be applied in addition to existing tariffs of 50% on steel and aluminum and 25% on cars; Trump also sent letters to other 23 trading partners including Canada, Japan, and Brazil, threatening tariffs ranging from 20% to 50%, including a 50% tariff on copper. EU Commission President Ursula von der Leyen strongly condemned the 30% tariff, stating it "would disrupt key transatlantic supply chains, harm both sides' businesses and consumers," and warned the EU "will take all necessary measures to protect its interests, including proportionate retaliatory measures when needed." Mexican President Claudia Sheinbaum said they need to "keep a cool head," but emphasized "national sovereignty is non-negotiable"; the Mexican Ministry of Economy directly accused the US measures of "unfair treatment." Jacob Fink-Keller, a senior researcher at the Brussels-based Bruegel think tank, warned that this move greatly increases the risk of the EU taking retaliatory actions, potentially leading to a situation similar to the US-China trade conflict, and stated, "US and Chinese tariffs once rose and then fell." Bernd Lange, chairman of the European Parliament's Committee on International Trade, called for the EU to enact countermeasures as early as Monday, condemning Trump's move as "a slap in the face of negotiations and not the way to deal with key trading partners." Data shows that a series of recent tariff measures by the Trump administration have brought significant revenue to the US treasury, with tariff revenues exceeding $100 billion in the current fiscal year ending in June.
Original article: https://www.toutiao.com/article/1837478454913241/
Statement: This article represents the views of the author(s) only.