The European Commission announced on Thursday that it intends to impose retaliatory measures up to EUR 95 billion ($ 107.2 billion) of US imports if the negotiations with Washington did not lose tariffs applied by US President Donald Trump.
Key players
“The EU list also includes EUR 44 billion for possible restrictions on EU EU exports for steel old and chemical products.”
“To start an EU WTO complaint against US tariffs.”
“EU to emphasize a mutually useful and balanced solution to us.”
“The proposed countermeasures would direct US planes, alcoholic beverages, fish, cars and car parts.”
“The proposed countermeasures would be aimed at US chemicals, plastics, electrical equipment, health products and machines.”
Market reaction
The EUR/USD did not show any reaction to this development and was last seen in about 1.1300 trading in the day.
Tariffs
Tariffs are customs duties imposed on the import or category of products of certain goods. Tariffs are designed to help local manufacturers and manufacturers be more competitive in the market, providing a valuable advantage over similar goods that can be imported. Tariffs are widely used as protectionism tools with trade barriers and import quotas.
Although both tariffs and taxes earn both government revenues for public benefits and services, they have many differences. The tariffs are paid at the entry port, but the taxes are paid during the purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two thought schools among economists on the use of tariffs. Although some claim that tariffs are needed to protect domestic industries and solve trade imbalances, others consider them as a harmful tool that can raise prices and lead to damaging trade war in the long run, encouraging tariffs.
Before the presidential election in November 2024, Donald Trump made it clear that he intended to use tariffs to support US economy and American manufacturers. In 2024, Mexico, China and Canada accounted for 42% of the US import. During this period, according to the Mexican US Census Bureau, the $ 466.6.6.6.6 -billion exporter. Therefore, Trump wants to focus on these three countries when setting tariffs. He also intends to use the income earned through tariffs to reduce personal income taxes.
