US President Donald Trump signed executive orders to impose customs duties on imports from Canada, Mexico and China, and threatened to impose fees on the European Union imports.
According to an official at the White House, the United States imposed 25% fees on all imports from Canada, and 10% graphics on Canadian energy products.
The White House indicated that reducing fees on Canadian imports of energy aims to reduce the rise in costs.
A White House official also confirmed that Trump signed an order to impose a 25% fee on all imports from Mexico.
At the same time, Trump imposed 10% fees on all imports from China in addition to the current fees.
Trump justifies these measures by accusing the three countries of playing a role in the fentanel crisis, a strong opium material that causes a huge crisis in the United States.
Trump says China exports the basic components of the drug to Mexico, allowing Mexican drug gangs to manufacture fentanel that is then sold in the United States. Mexico and Canada also criticizes their lack of control over the irregular migration flows.
Thus, the US President attacks the three major commercial partners who collect more than 40% of the United States’ intervention.
These decisions did not pass without a response, as the Canadian and Mexican governments announced that they would take anti -American fees, at a time when they tried to reassure Washington that they were working to address American concerns about borders and trade.
Canada had offered alternative solutions to avoid entering into a comprehensive commercial war, but the US administration went on to implement its decision without any decline.
These steps may lead, according to many analysts and followers, to escalate trade tensions between the United States and its main partners, with the possibility of retaliatory measures by the targeted countries.
This may be just the beginning, as Donald Trump is already preparing for the next stage of his commercial war, and he said regarding the European Union, “Will I impose customs duties on the European Union? Do you want the real answer or diplomatic answer? Yes, certainly. The European Union treated us very badly “.
Economic repercussions
Imposing new American customs duties on the European Union will lead to great economic and commercial repercussions, including:
- The escalation of the trade war, as Europe and the targeted countries are expected to respond by imposing retaliatory fees on American products, as they previously did in commercial conflicts with Washington, the European response may include imposing taxes on American goods such as cars and agricultural products, which will affect the exported American companies.
- The slowdown in economic growth, as the increase in customs duties means high import costs, which may lead to high prices in the American and European markets, and therefore companies that depend on via Atlantic trade will be affected and may have to reduce production or workers’ demobilization due to high costs. Investors will also be anxious, which may lead to disturbances in the financial markets.
- American measures and responses should negatively affect the automotive and technology sector, as the German and French auto industry is expected to be the most affected, as the United States is a major market for it. American technology companies such as Apple and Microsoft, which depend on European components, may face challenges in supply chains.
- The weakness of the US -European coalition, relations between America and European countries may be tense, especially if the European Union considers the fees unjustified, which may affect cooperation in issues such as foreign policy and security and NATO (NATO).
- With the escalation of tension between America and Europe, European companies may resort to strengthening their relations with China and other countries, which may reduce American influence in global trade.
In general, these measures may lead to global economic turmoil, and may enter the global economy in a stage of slowdown if the trade war escalates.
