Donald Trump News / Trump drops tariff bomb on EU and Mexico, imposes 30% duty

Donald Trump News: US President Donald Trump on Saturday announced on his social media platform that a 30% tariff will be imposed on goods imported from the European Union (EU) and Mexico from August 1. This announcement is being seen as a major setback in the global business world. Trump clarified in his letters that this step has been taken to protect American interests and reduce the trade deficit. Earlier, new tariffs have also been imposed on countries like Japan, South Korea, Canada and Brazil, which will be effective from August 1.

European Union's failed hopes

The European Union was initially confident that it would achieve a comprehensive trade agreement with the US, which would have a provision for zero tariffs on industrial goods. However, this hope was dashed after months of complex negotiations. The EU is now moving towards a small, temporary agreement, but internal differences are emerging in this group of 27 countries. Countries like Germany are advocating for an agreement as soon as possible so that their automobile and other industries do not suffer. At the same time, countries like France believe that the EU should not bow down to US pressure. These differences are challenging the solidarity of the EU.

Tariff on Mexico: Issue of narco-trafficking and illegal migration

Trump acknowledged in a letter to Mexico that Mexico has taken some steps to stop illegal migration and fentanyl smuggling. However, he stressed that these efforts are inadequate. Trump believes that Mexico has not taken enough action to prevent North America from turning into a center of narco-trafficking. This tariff is being seen as a strategy to put pressure on Mexico, so that it takes more strict steps on these issues.

Impact on global trade

Since Trump came to power again, tariff policy has become a key part of the US trade strategy. The US Treasury is getting huge revenue from these tariffs. According to the data, more than $ 100 billion has been earned from customs duty till June this financial year. However, experts are warning that these tariffs can disrupt the global supply chain and cause an increase in consumer prices. Escalating tensions with trading partners such as the EU and Mexico could also impact the global economy.

Future prospects

The EU and Mexico are now considering retaliatory strategies. The EU has already begun discussing the possibility of retaliatory tariffs, while Mexico has spoken of filing a complaint with the World Trade Organisation (WTO). Trump's 'America First' policy is creating new tensions in global trade, and it will be important to see in the coming months how these tariffs affect the global economy and bilateral relations.