In the trade dispute with the European Union, US President Donald Trump spoke out for punitive tariffs of 50 percent. This delivery for goods from the EU should come into force on June 1, the Republican wrote Truth Social on his online language tube.
“There are no tariffs if the product is built or manufactured in the United States,” he added. On the ongoing negotiations, Trump wrote that she did not lead to anything.
The European Union was primarily founded for the purpose of overprovating the United States in the area of trade, Trump complained. He criticized “powerful trade barriers, VAT, ridiculous company penalty, non-monetary trade barriers, currency manipulations, unfair and unjustified lawsuits against US companies and much more”.
The reaction was sharp on the financial market. The European stock markets temporarily dropped by around three percent. The euro came under pressure and secure facilities such as German government bonds were in demand. Course losses on the stock exchanges are also emerging in the United States.
Negotiations run with Europeans: inside
In April, Trump surprisingly decided in April on the stock and financial markets to grant many countries- including the EU- a break from certain tariffs for 90 days. It is about punitive levies that are based on the trade deficit of the respective countries. The US President initially put part of his huge customs package, which he announced in early April. The EU had also announced that the planned counter-tariffs were initially exposed to US products for 90 days.
Trump had threatened the EU with a total of 25 percent, should there be no own agreement with the United States. The month of July has been considered the deadline. So far, the Trump government has not dealt with an offer from Brussels for the mutual cancellation of all tariffs to industrial goods. In the past, however, Trump was actually optimistic about finding a solution in the customs dispute with the Europeans.
It is now completely unclear whether the punitive tariffs in the amount of 50 percent really come into force from June. Trump has regularly threatened with high tariffs in the past – and then completed a U -turn. The US President wants to correct alleged trade weights with the tariffs and shift production to the United States. At the same time, customs revenues should serve to at least partially counter its expensive election promise of large tax cuts.