US President Donald Trump has signed decrees to impose customs duties on imports from Canada, Mexico and China, and has threatened to impose costs on the European Union.
According to a White House official, the United States has imposed 25% costs on all imports from Canada and 10% graphics on Canadian energy products.
The White House has indicated that reducing costs on Canadian energy imports aims to reduce costs.
A White House official also confirmed that Trump had signed a prescription to impose 25% fees on all imports from Mexico.
At the same time, Trump imposed costs of 10% on all imports from China in addition to current costs.
Trump justifies these measures by accusing the three countries of playing a role in the fartanel crisis, a strong opium material that causes a huge crisis in the United States.
Trump says that China exports the basic components of the medication to Mexico, allowing Mexican drug gangs to make fartanel which is then sold in the United States. Mexico and Canada also criticizes their lack of control over irregular migration flows.
Thus, the American president attacks the three main business partners who collect more than 40% of the intervention of the United States.
These decisions have not been unanswered, because the Canadian and Mexican governments have announced that they would have anti-American costs, at a time when they tried to reassure Washington that they worked to respond to American concerns about borders and Trade.
Canada had proposed alternative solutions to avoid concluding a complete trade war, but the US administration then implemented its decision without any decline.
These steps can lead, according to many analysts and followers, to increase trade tensions between the United States and its main partners, with the possibility of reprisal measures by targeted countries.
It is perhaps only the beginning, because Donald Trump is already preparing for the next stage of his trade war, and he said about the European Union, “will I impose customs tasks on European Union?
Economic repercussions
The imposing new American customs tasks on the European Union will lead to major economic and commercial repercussions, in particular:
- The escalation of the trade war, because Europe and the targeted countries should react by imposing costs of reprisals on American products, as they have previously did in commercial conflicts with Washington, the European response may include taxation Taxes on American products such as cars and agriculture products, which will affect exported American companies.
- The slowdown in economic growth, because the increase in customs duties means high import costs, which can lead to high prices in the American and European markets, and therefore companies that depend on the Atlantic trade will be Assigned and may have to reduce production or workers “demobilization due to high costs. Investors will also be anxious, which could cause disturbances in the financial markets.
- American measures and responses should negatively affect the automotive and technological sector, as the German and French automotive industry should be the most affected because the United States is a major market for this. American technological companies such as Apple and Microsoft, which depend on European components, can face challenges in supply chains.
- The weakness of the American European coalition, relations between America and European countries can be tense, especially if the European Union considers unjustified costs, which can affect cooperation in questions such as policy and foreign security and NATO (NATO).
- With the climbing of tensions between America and Europe, European companies can resort to strengthen their relations with China and other countries, which can reduce American influence in world trade.
In general, these measures can lead to global economic disorders and can enter the global economy in a slowdown stage if the trade war degenerates.