European Union to begin counter trade tariffs against United States on Friday


A trade war is brewing between the world superpowers, US and China and this could have dire economic consequences, not just for the two countries but globally too. Beijing has vowed to immediately retaliate with its own tariffs on USA soybeans and other farm products. Increased tax burden on goods from imposed duties is also carried by the end user.

It had previously registered the move with the World Trade Organization (WTO).

Trump imposed tariffs of 25 per cent on European Union steel and 10 per cent on aluminum on June 1.

"The United States decision to impose targets on Europe goes against that, in fact it goes against all logic and history", European Commission President Jean-Claude Juncker said on Thursday.

Speaking in Ireland, he said: "The trade that we believe in is built on rules, trust and reliable partnership".

Those personally in the line of fire are among the most concerned. "How they'll take it, we'll have to wait and see".

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USA -made bourbon whiskey is now under a 25 percent tariff in the European Union, in retaliation for the Trump administration's tariffs on steel and aluminum.

The trade war risks significantly raising prices for consumers.

Donald Trump has threatened a 20% tariff on all European cars if the EU does not remove trade barriers introduced on Friday.

Trump ran for the presidency on a vow to topple seven decades of American policy that had favored ever-freer trade among nations.

The EU retaliatory tariffs will initially target a list of United States goods worth 2.8 billion euros (3.24 billion dollars), most of which will be hit with import duties of 25 per cent. "Mr Trump has now opened up two fronts of this conflict and both have the potential to escalate out of control". Beijing has vowed to immediately retaliate with its own tariffs on USA soybeans and other farm products in a direct shot at Mr. Trump's supporters in America's heartland. He charged that a succession of poorly negotiated accords - including the North American Free Trade Agreement and the pact that admitted China into the World Trade Organization - put American manufacturers at an unfair disadvantage and destroyed millions of U.S. factory jobs. So even if the USA and China are having this battle, trade diversion means what may happen is that many of their market groups will be dumped on other markets to ensure that they don't overconsume or overproduce.