The United States (US) administration, has started a US-EU trade war and has imposed $7.5 billion worth of tariffs on goods from the EU, after the negotiation between the European officials and US Trade representatives failed. The US has imposed tariffs on several products of the EU including Airbus, French wine and Scottish whiskey.
The tariffs took effect on 18th of October 2019, and there is a high probability that further tariffs would be imposed in November 2019. Analysts believe that this step by the US, coupled with the already raging trade war with China, could destabilize the entire world economy, which is already coping with the effects of US-China trade war.
The tariffs are aimed at several items including consumer goods such as the wine from France, Germany and Spain, which would now face 25% tariffs. The Boing Company owned by several countries of the EU would now face 10% tariffs in the US. However, the main issue here is that Donald Trump is planning to impose tariffs on car imports to the US from the EU. The major automakers such as Germany would face a massive loss if that step takes into effect. Donald Trump, commenting on the issue said that cars from the US do not enter the EU markets as easily as the cars from the EU enter the US.
France’s Economy Minister Bruno Le Maire warned that the move would face retaliatory action from the EU. He further added that the EU has already a framework in place to retaliate in response to these tariffs.