Monday, April 23, 2018
Possible Trade War with EU
The U.S. gave a number of countries temporary exemptions from their tariffs for steel and aluminum which are now set to expire on May 1st. The European Union is seeking “unconditional permanent exemptions,” and has published a list of hundreds of American products they could target if the U.S. decides to move forward with tariffs. Trump has threatened to respond to any new EU trade barriers to a tax on vehicles made by European carmakers. If the US and EU go tit for tat it would hurt trade between them which is currently around 1.3 trillion a year.
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3 comments:
I am curious as to how a winner of a trade war is determined. Is it as simple as whomever suffers the biggest loss in GDP after such event is in turn the loser?
This article shows that Trump is serious about starting a trade war. He is not only looking to put tariffs on China but also now he is threatening the EU. It would be good if Trump's advisors convince to act otherwise because this trade war will not only affect the countries he is targetting, but it will also affect the US economy. Because by protecting sectors like aluminum and steel, is going to affect other industries by having less to invest in them and also by making other countries target those industries which could create a big impact in the economy.
This would not only hurt trade but would cause a price increase for any of the goods that we usually imported from Europe. This could cause inflation as well which could hurt consumer confidence and be bad for the economy over all.
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