Donald Trump announced a new trading plan, making the economic tensions in the world a boiling point. The former president wants to introduce ‘reciprocal’ rates against countries that, according to Washington, use unfair commercial practices. This can have major consequences for trading partners such as Brazil, India, Japan and Canada, but also for the eurozone.
Trade disturbances and geopolitical re -settlements
According to Trump, many countries have been benefiting from higher rates, subsidies and strict regulations that disadvantage American companies for years. “Those days are over,” he said. The first focus is on countries with which the US has the largest trade deficit, including China and Mexico. The new taxes can already take effect on 2 April.
Trumps trading plan comes at a time when he also takes big steps on a diplomatic level. He argues for a peace agreement between Russia and Ukraine and has approached both Vladimir Putin and Volodymyr Zenskyy. Trump suggested that Russia should be re -admitted to the G7, despite the annexation of Crimea in 2014.
His attitude towards Europe is less gentle. He expressed fierce criticism of the EU, partly due to tax measures against American tech companies and the way in which European courts deal with large American companies. “The EU is very unfair towards our companies,” said Trump.
During a visit by Indian Prime Minister Narendra Modi, Trump praised the strong ties between the US and India, but at the same time he criticized the high Indian import duties. He announced that the US will sell more oil, gas and defense products to India to reduce the trade deficit of more than $ 35 billion. There are plans to start commercial interviews and ultimately conclude a trade agreement.
New phase in the trade wars
In addition to the reciprocal rates, Trump also wants to impose extra taxes on cars, semiconductors and pharmaceutical products. He has already implemented an input load of 10 percent on Chinese goods, and from next month steel and aluminum products will be taxed by 25 percent.
Trumps strategy will undoubtedly cause unrest in the international markets. Trade disruptions can force companies to adjust their strategies, while governments are preparing for countermeasures worldwide. The big question is which countries will negotiate to prevent the rates and which will opt for retaliation measures.
With this new step, Trump opens the door to the next phase in the global trade wars. The reaction of trading partners will determine how great the economic impact will be. To date, Bitcoin (BTC) did not perform fantastic under the pressure of Trump’s trade war, but perhaps the market is now used to it.
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Source: https://newsbit.nl/trump-slaat-terug-met-importheffingen-ook-dreiging-voor-europa/
