Trump launches new trade war, hits allies with steep tariffs and threatens EU
Photo: U.S. President Donald Trump (Getty Images)
US President Donald Trump has launched a new phase of the global trade confrontation, announcing steep tariffs on allies and threatening the European Union with additional trade restrictions, Bloomberg reports.
Pressure on Canada and Brazil
According to the media outlet, the White House announced this week that it plans to impose a 50% tariff on approximately $20 billion worth of imports from Canada amid disputes over automobiles, dairy products and alcohol.
The restrictions could take effect as early as August 19 if Ottawa fails to meet Washington's demands.
Trump also issued an ultimatum to generic drug manufacturers, giving them two years to move production to the United States or face tariffs of up to 100%.
At the same time, additional 25% tariffs on imports from Brazil took effect, prompting the Brazilian government to allocate a $3.6 billion aid package for exporters.
The US Commerce Department also announced tariffs of 10% and 12.5% on imports from most major trading partners, citing allegedly insufficient oversight of forced labor in supply chains.
Rising tensions with EU and legal challenges
Toward the end of the week, the US president threatened new tariffs on the European Union in response to a $1 billion fine imposed by European regulators on Google.
Experts say businesses and markets are already beginning to adapt to the constant pressure coming from Washington.
"Donald Trump is committed to rebuilding the tariff wal," said Josh Lipsky, vice president of the Atlantic Council.
The administration's actions have sparked outrage among US partners and domestic businesses. American companies have already filed lawsuits in the US Court of International Trade, accusing the White House of illegally using existing laws to circumvent previous court rulings.
Analysts argue that Trump is once again targeting the wrong countries with economic pressure.
"The Trump administration continues to impose tariffs on partners and allies and not dealing with the bigger challenge of China," said Chad Bown, a senior fellow at the Peterson Institute for International Economics.
US trade pressure and disputes with EU
Earlier, the US president threatened to impose new tariffs on the European Union in response to the billion-dollar fine levied by European regulators against Google, as well as over subsidies for aircraft manufacturer Airbus.
Meanwhile, the United States is also seeing the groundwork laid for a potential domestic political story. Donald Trump has claimed that he has already won presidential elections "three times" and plans to run for president for a fourth time.
