The United States says it will impose a 20% import tariff on products from the European Union starting from midnight.
Washington will also levy a 34% tariff on imports from China, according to a list of countries President Donald Trump mentioned in his long-awaited speech, which he had dubbed ‘Liberation Day’ in recent days.
This “reciprocal tariff” will be at least 10%.
Trump stressed that the American people are “kind,” noting that the US tariff is half of what other countries impose on the United States. According to Trump, European trade barriers amount to a 39% tariff on US goods, hence the 20% tariff.
With these so-called “reciprocal tariffs,” Trump aims to end years of “unfair trade” in which, he claimed, other countries have “cheated” the United States.
This includes not just import tariffs, but also other measures such as VAT and trade regulations.
The speech was in line with Donald Trump’s ambition to “make America wealthy again.” Trump views the new tariffs as a negotiating tool, believing that they will force the US’s trade partners to stop “taking advantage” of the country.
Trump advisor Peter Navarro said earlier this week that the aim was to raise $700 billion annually from the tariffs.
However, there are concerns that the tariffs could accelerate inflation, slow consumer spending, and hamper the US economy. Depending on how America’s trade partners respond, there are fears that the international trade war might escalate further.
European Commission President Ursula von der Leyen stated on Tuesday that if the US enforces these reciprocal tariffs, the European Union has a “strong plan” to retaliate if necessary.
