With a top official of the European Union (EU) launching a fresh series of attacks on the trade policies of US President Donald Trump, the EU introduced retaliatory tariffs on US goods.
The tariffs have been imposed on €2.8bn (£2.4bn) worth of US goods and have been implemented from Friday this week.
Bourbon whiskey, motorcycles and orange juice are among the goods that have been included on the tariff list.
The duties imposed by the US on the EU are against “all logic and history”, said European Commission president Jean-Claude Juncker.
“We will do what we have to do to rebalance and safeguard” the EU, he said addressing the Irish parliament in Dublin.
Tariffs of 25% on steel and 10% on aluminium imported into the US was announced by the Trump administration in March.
American steel and aluminium producers – an industry sector that is supposedly vital to the US. Is being threatened by global oversupply of steel and aluminium, driven by China, Trump had argued.
Following an initial exemption of the EU, Canada and Mexico from the tariffs on steel and aluminium, they were finally imposed on these trading partners by the Trump administration from June 1.
The tariffs were also imposed on India.
And in retaliation to the Rump tariffs, India has announced the imposition of import tariffs on 29 products that are imported into the country from the US and which include a number of agricultural products and steel and iron products. Almonds, walnuts and chick peas are among the products that would face heightened import duties applicable from 4 August.
Imposition of limits have been agreed on the quantity of metals that can be shipped to the US in view of the US tariffs by South Korea, Argentina, Australia and Brazil.
Announcement of retaliatory tariffs on C$16.6bn (£9.5bn) worth of US exports have bene announced by Canada and would be applicable from July 1.
About two weeks ago, import tariffs on American goods worth $3 billion with the product list including steel, pork and bourbon have been imposed by Mexico.
If China “refuses to change its practices”, threats of imposition of additional 10% tariffs have been issued by Trump earlier this week on a range of Chinese goods that would be worth $200bn (£150bn).
On the other hand, China has accused the US of an act of “extreme pressure and blackmail” and viewed that it would reply with “strong counter-measures”.
According to the concept of President Trump, a in a trade relationship, the country that imports more than it exports to the other country is in a loosing position.
While not letting any country “take advantage of us on trade anymore”, Trump has been specifically tormented with the trade deficit that the US has with China and Mexico.
Around $50bn (£38bn) is the current value of the US trade deficit.
However, this may be the outcome of a strong economy where the US consumers are making more purchases as they are well off.
Trump wants to correct the imbalance with imposing new tariffs.
(Adapted from BBC.com)