The president of the United States, Donald Trump, now attacks the European Union. The president said at a press conference after the first meeting of his government cabinet that 25% tariffs will be imposed “generally” to all EU products They intend to enter through US borders.
The president did not realize anything else about it, only that “they will be announced very soon.” He also lashed out at the block, ensuring that it was created “to harm the United States,” said the newspaper Financial Times.
The speech of the US President was confusing, since the dates that highlighted the imposition of tariffs on Mexico and Canada do not fit the calendar that had been proposed so far. Trump stressed that tariffs to Mexico and Canada would be implemented on April 2, but his last message pointed to March 4, so Now it remains in the air if Trump has in mind, or has already decided, a new tax delay for these two countries.
Although tariffs will be general, several media emphasize that Trump lashed out directly towards cars made in Europe. A priori, these rates would be added to those that imposed steel, cars and pharmaceutical products in the middle of the month, also 25%, from anywhere in the world, but everything is very confusing until the official announcement occurs. “We’ll announce it soon,” he said.
Previously, Trump expressed his discontent with the Value Added Tax (VAT) that is applied in Europe. The argument he gave is that he generates “a competitive advantage” To European exporters and harms US companies that want to sell their products to the block.
A priori, this 25% tariffs leads to think that these “reciprocal tariffs” that I would like to impose so that the tax burdens faced by US products in other countries face are equal.
Specifically, Donald Trump argues that VAT acts as “an undercover tariff”, since applying to imported products increases its price, affecting US competitiveness in the European market.
The White House Cabinet himself, Stephen Miller, said the following about it: “Did you know that when you sent a car from the United States to Europe, if they let it in because they have many non -tariff barriers, between VAT and tariffs, that car pays a 30%tax? The German car, or a European car sent to the United States, pays a tax of 2.5%, or basically 0%.”
But there are already many experts who determined that this statement is not true. Sean Bray, Jared Walczak and Erica Yorc, experts from Tax Foundation, a Think Tank Based in Washington, this statement in a study that VAT is not a tax that harms US exports to the EU and “should not be used as justification for retaliation tariffs”.
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