US President Donald Trump has threatened to impose further tariffs on European Union goods, escalating the ongoing trade war between the US and its allies. The move comes as tensions with Canada and Mexico remain high, with both countries imposing retaliatory measures against US products.
Trump’s decision was announced after he signed a package of tariffs on Canadian and Mexican goods, sparking panic and uncertainty in the global economy. The US President claimed that Canada would “cease to exist” without its trade surplus with the US, but his words have been met with skepticism from Canada and Mexico.
The new tariffs are set to launch on Tuesday, targeting Canadian alcohol, cosmetics, paper products, as well as passenger vehicles, trucks, steel, aluminum products, certain fruits and vegetables, beef, pork, dairy products. The impact of these tariffs is expected to be significant, with analysts warning that an average US household could lose $1,245 in income this year.
The move has also sparked criticism from economists, who argue that the tariffs are a “self-inflicted wound” to the American economy. Larry Summers, former treasury secretary, warned that the tariffs would lead to China and other countries moving their investments to the EU, harming US interests.
As the trade war continues to escalate, the US President is facing growing pressure from lawmakers and business leaders to reconsider his approach. With inflation expected to rise, Trump’s decision to impose more tariffs could prove disastrous for consumers and businesses.
Trump himself has predicted that there will be some pain from these tariffs, but he remains confident that they will ultimately lead to economic growth. However, with the global economy already under strain, it is unclear whether his strategy will succeed.
Source: https://apnews.com/article/trump-tariffs-canada-mexico-china-trade-surplus-3010e6368545e2976feb5ac6b41e528e