The United States has entered into a wide commercial confrontation with its main commercial partners, in a move that sparked global condemnation and concerns about the future of global trade.
The following are the latest developments a week after the start of this confrontation, according to the French News Agency.
China .. imposing revenge fees and procedures
As of Tuesday, the United States has started to apply a 10% increase in customs duties on all imported Chinese products. In response, Beijing announced the imposition of 15% fees on American coal and natural gas, 10% on American oil, as well as agricultural mechanisms, vehicles and other products.
According to a report issued by Goldman Sachs, Chinese measures are still relatively less severe, as Chinese fees include $ 14 billion in American products, compared to 525 billion dollars in Chinese exports that Washington imposed on customs duties.
The bank added that China follows a more coordinated strategy in its response, as it was not limited to customs duties, but also stressed its restrictions on exporting basic minerals, and opened an investigation against the American company “Google” under the anti -monopoly laws.
In light of this escalation, negotiation and bargaining remains inevitable between the two largest economies in the world. On Monday, US President Donald Trump announced the possibility of a nearby contact with his Chinese counterpart Xi Jinping, but he soon confirmed that he was “not in his order” to hold these talks.
Mexico and Canada … a temporary truce in exchange for concessions
Although the United States imposed customs duties on Mexico and Canada imports, their implementation was immediately suspended, as Washington agreed to re -study these measures a month after a month, provided that the two countries reinforce their efforts to combat drug smuggling and irregular migration.
Canada had previously prepared to respond to US sanctions, especially as it was a target of Trump’s commercial policies in his first term. However, Ontario, the country’s economic center, expressed flexibility in its position, as it abandoned the prevention of American companies from participating in public contracts and canceled a contract with “Starlink”, the company owned by Elon Musk, the ally close to Trump.
Europe is preparing for confrontation
Brussels did not hide its fears that Trump might target the European Union after China, Mexico and Canada, as the US President stated on Sunday that he would soon make new decisions towards Europe.
For its part, the European Commission has been working for months to prepare multiple scenarios to respond to any American measures that may target major sectors such as the auto industry, mechanisms, and mining.
The President of the European Commission, Ursula von der Line, explained, on Tuesday, that the European Union is ready to take difficult negotiations when necessary, stressing the importance of “making decisions based on rationality, away from emotion or nostalgia to a wandering commercial world.”
According to the report of the Goldman Sachs, US measures may affect about 40% of European exports to the United States, which represents about 1% of European GDP, which increases the importance of European coordination to confront any possible punitive measures.
The effect varies from one sector to another
Multinational companies suffer from the increasing repercussions of customs duties, although the effect varies from one sector to another. For example, Mattel, a Barbie doll, announced that it may have to adjust their prices due to the adoption of some of its products to import from China.
As for foreign companies exporting to the United States, it may lose the advantage of accessing a large American market. As a result, some companies, especially European auto companies, may have to transport their factories into the United States to avoid additional costs related to customs fees.
In light of this climate of trade uncertainty, companies appear to be hesitant to make long -term investment decisions. “This state of uncertainty creates a vicious circle, as companies do not invest because of the ambiguity of the economic future,” said Anna Boata, economist at Elianz Trade Insurance and Credit.
The future of globalization is at stake
Donald Trump’s commercial policies, which depend mainly on protectionism and bilateral negotiations, raises new questions about the future of globalization, which had already been subjected to great tremors due to the Kofid-19 and war in Ukraine.
In addition, the World Trade Organization, which is supposed to be the authority to settle commercial conflicts, has been in paralysis for years, due to the American policies that obstructed its work.
Nevertheless, experts warn of intimidation in evaluating the situation. According to Pascal Lami, the former president of the World Trade Organization, “World Trade is still growing in size, and despite the slowdown of globalization, it has not completely declined.”
In the same context, Anna Boata asserts that “this is a new economic system, where the lowest countries must negotiate either proactively or as a way to respond,” referring to the necessity of adopting flexible strategies to adapt to global economic changes.
