While much of the world is focused on the U.S – China trade war, not many realize that Trump administration has also waged a tariff war with the European Union (EU) as well. Ever since the case for Airbus receiving illegal subsidies from the EU was brought to the World Trade Organization (WTO), the government of the United States of America has been focused on developing a pragmatic counter-strategy to earn what it refers to as its rightful place for trade with the European Union.
Newly Imposed Tariffs Is A Victory – President Trump
Following the recent WTO ruling on the controversy, Trump administration has imposed new tariffs on EU goods worth as much as $7.5 billion. The new tariffs primarily affect Airbus aircraft, Italian cheese, and French wine among a wide range of other EU goods. As per the reports, President Trump has referred to the implementation of the new tariffs as a “nice victory” in a tweet. He has further stated that the United States of America has long been a victim of ill-treatment by the EU on trade. He has verbalized his plans for remedial interventions, be in terms of trade barriers, tariffs, or any other relevant factor.
European Union To Retaliate Against The New Tariffs
As per the expectations, the implementation of the new tariffs has not been well-received by the European Union. Associations of wine, whiskey, and cheese makers have firmly retaliated with a statement that in order for the new tariffs by the U.S government to be considered fair, it should have been confined to the Airbus aircraft only. They further reported that the U.S strategy is synonymous with targeting the association for something that they have nothing to do with.
Surprisingly enough, 10% tariffs have been applied to the Airbus Aircraft by the U.S government. On the contrary, cheese, whiskey, and wine products from all over Europe have been subjected to as high as 25% tariffs. It has been declared that the new tariffs will be applicable from October 18th, 2019.
Mr. Heiko Maas, the current foreign minister of Germany, has expressed his concerns about an imminent retaliation from the EU against the newly imposed trade tariffs by the U.S government. While speaking to Funke, the third-largest newspaper of Germany, Mr. Maas stated that if the new tariffs persist, the European Union will be left with no option other than retaliating. It will then be in the best interest of the EU to get approval from the World Trade Organization (WTO) and impose stringent tariffs against the United States of America in response.