In a recent development, President Donald Trump of the United States reignited his trade dispute with the European Union. His contention was rooted in unfruitful discussions with the bloc, leading him to propose a significant 50% tariff on the EU, which negatively impacted global stock markets.
In addition to the EU, President Trump’s remarks also targeted smartphone manufacturing giants, including the American tech behemoth, Apple. He asserted that he would impose a 25% duty on these companies unless they relocated their manufacturing bases to the United States.
These comments, stirring fears of potential worldwide economic turmoil, prompted a downturn in the stock markets. This was especially notable as the markets had been relatively calm following President Trump’s recent agreements with China and Britain— two other vital trading powers.
President Trump initially voiced his threat of imposing tariffs on the EU through an early morning message. He stressed how the discussions with the EU were at a deadlock, justifying his suggestion to impose the 50% tariff.
The President continued to maintain his stance later in the day while speaking to reporters in the Oval Office. He indicated that his decision was firm, and it was unlikely that anything could sway his stance – reinforcing the notion that he was not looking to negotiate.
Trump, the 78-year-old billionaire with roots in the real estate sector, dismissed concerns that his tariffs could have any harmful consequence on American trade and industry. Instead, he claimed that the tariffs were, in effect, beneficial for the American business ecosystem.
If the tariffs were to be implemented, it would mean a significant hike from Washington’s current baseline duty of 10%, escalating existing tensions between the world’s largest economy and its most significant trade bloc. The notion of such a substantial tariff increase understandably met with dismay among European leaders.
Reacting to Trump’s proposal, the Prime Minister of Ireland, Micheal Martin, labeled the announcement as ‘tremendously disappointing,’ drawing attention to the damaging consequences of tariffs on all parties involved. France’s trade minister, Laurent Saint-Martin, also voiced his disapproval while echoing the sentiment of de-escalation.
Adding to the market apprehension, President Trump fired a separate set of warnings at Tim Cook, the CEO of Apple, criticizing him for his failure to heed Trump’s call to shift iPhone production to the USA. Trump stressed his long-standing expectation for iPhones sold in the US to be manufactured in the country, necessitating a 25% tariff if otherwise.
Expanding his threat, Trump announced that such taxes would affect all smartphone makers that didn’t manufacture their products within the United States. Expressing his concern for a level playing field, President Trump emphasized that such a tariff must also extend to major players like Samsung.
April 2, termed as ‘Liberation Day’ by Trump, witnessed the imposition of broad tariffs on most of the world, starting with a basic 10% levy that escalated to a more substantial 20% levy on the EU. The markets, initially thrown into a state of confusion, steadied after the higher tariffs were suspended for 90 days.
During this period, Trump managed to secure early wins with Britain and China, the world’s second-largest economy. However, discussions with the European Union yielded little change, with the EU even threatening retaliation by imposing tariffs on US goods worth nearly €100 billion ($190b) if the duties on European goods were not reduced.
On that Friday, US Treasury Secretary Scott Bessent informed Bloomberg Television that the lower 10% tariff rate was designed to invite nations or trading blocs to negotiate in good faith. His statement was in reply to Trump’s latest aggressive stance against Europe, which had perturbed the traders and caused the global stock markets to tumble.
Wall Street’s primary indices dipped around 1% during the initial hours of trading, marking an unsettling day in the world markets. Even as Apple’s shares plummeted by 2.5%, indices in Paris, Frankfurt, and London also took a significant hit, ending with losses of around 1.5% and adding to the concerns around global economic stability.
The post Trump Reignites Trade War with EU, Proposes Hefty Tariffs appeared first on Real News Now.
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