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Main » 2019 » April » 10 » Trump continues to heat up trade relations
Trump continues to heat up trade relations


It seems that Trump is not willing to compromise and is ready to continue to defend the US position in the trade. 

Thus, the leader of the United States, Donald Trump announced that it was decided to introduce tariffs on a number of goods from the European Union for a total of $ 11 billion. This decision was due to the conclusion of the WTO on subsidies of the European Union for the Airbus corporation, which is engaged in aircraft construction.





Notably, it was in the $ 11 billion estimated damage, which are US subsidies by the European Union by Airbus. The adverse impact of these subsidies on the US confirmed the findings of the WTO. 

Back in March, the middle of the US president threatened tariffs against the EU, provided that the unit will not conduct trade negotiations with the United States. It turned out it was not just a threat. 

Thus, Trump was correct itself and its strategy. As early as last year, he reported on the introduction of fees in the amount of 25% steel and 10% for aluminum, which entered into force last summer. 

His next step would have become the tariffs for the automotive sector of the European Union, but since the latter was ready to respond duties in the amount of $ 300 billion, the matter was postponed. As it turned out - not for long. 

Notably, the US is ready to enter into a trade war with anyone and everyone can find an excuse. Note that a key figure in a trade war at the moment is China, which has come under severe duty on the part of the United States. Of course, followed by the response, but still caused damage to China was solid. 

States now conduct trade negotiations, but so far that a compromise is not found, although the deadline date of March 1 took place. On both sides sounded optimistic statements about the efficiency of the negotiations, but so far there is no agreement and when they will not know for certain yet. 

It is important to understand that China is leading the world economy, along with the United States and just impose their conditions would be difficult and unlikely. 

Another question the answer to which will need to get in the course of trade negotiations, this is what to do with the current duties? US not ready to abolish them, since they are a kind of guarantee that China will respect the agreements. Whereas representatives of the Beijing insists that the tariffs were abolished.


WELTRADE analyst 




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