Published: Fri, June 22, 2018
Finance | By Gustavo Carr

European Union slaps revenge tariffs on United States as trade war erupts

European Union slaps revenge tariffs on United States as trade war erupts

On May 31, the White House announced that it would be ending the exemptions at the end of that day.

"We are already beginning to see some increased regulatory scrutiny against US companies operating in the market, whether it is increased Customs enforcement, local emissions inspections at our companies' factories or stricter enforcement of the advertising law", said Mr Jake Parker, vice-president of China operations for the US-China Business Council in Beijing.

The tariffs, mostly 25 percent, are designed in part to "make noise" by targeting politically important states like Kentucky, Florida, and Wisconsin, EU trade commissioner Cecilia Malmstrom said.

According to the China Daily, the U.S. is trying to preserve the global economic system, which is working to America's benefit.

The economic difficulties America is facing are a result of its aggressive trade policy, not China or other countries, according to the daily. But in the current politically charged climate, a trade war is now a reality, as the United States decided in March to adopt an aggressive protectionist policy to correct what the Trump administration believes is a crippling trade deficit between the USA and several major trading partners.

The European Union will begin charging import duties of 25% on a range of U.S. products on Friday, in response to USA tariffs imposed on EU steel and aluminium early this month, the European Commission said on Wednesday. The move is in response to the U-S tariffs imposed on E-U metal exports.

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However, many lawmakers have expressed concerns that the tariffs will escalate into a trade war that will ultimately hurt American interests.

Trump recently approved heavy tariffs on $50 billion of Chinese imports. European Union steel and aluminium exports now facing United States tariffs are worth a total of 6.4 billion euros (RM29.6 billion).

The Chinese have said they will respond in kind. But "since April, you can quote something on Monday, and if the customer doesn't buy it right away, you may have to raise the price on Thursday". The department expected 4,500 requests.

The rising tensions and the chaos surrounding the steel and aluminum tariffs are starting to generate pushback on Capitol Hill.

Economists and trade analysts worry that there may be no way out of an all-out trade war between the United States and its most vital trading partners.

The world's most-powerful central bankers this week warned that escalating worldwide trade tensions have started damaging confidence among companies, threatening the global economic expansion. "The president has made it very hard for other countries to give him what he wants".

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