Ever since President Trump announced the outlines of his trade reform agenda – an aspect of which was his most recent Tax Reform – officials and emissaries from other countries have been complaining bitterly. The European Union (EU), has claimed that America’s business friendly tax reforms are making Europe uncompetitive in global markets.
However, that isn’t the whole story. Although the EU is annoyed by the tax reform, they are absolutely enraged and terrified by Trump’s plan to institute tariffs – specific targeted taxes on imported goods – on major European exports. On Sunday, a European Union’s top official issued a warning that the 28-member EU bloc will issue retaliatory tariffs if Trump increases taxes on certain European goods.
Since even before the time of Founding Father, Alexander Hamilton, tariffs have been an economically controversial way to boost local and domestic industries by disadvantaging global competitors. In this way, tariffs can be seen as an anti-globalist measure.
According to The Associated Press, an EU budget commissioner Guenther Oettinger told Germany’s Welt am Sonntag newspaper, “If European exporters have to pay tariffs that will become a two-way street. Then U.S. exporters will have to pay tariffs here.”
Oettinger’s comments come after what Trump said last week – he would consider responding to the EU’s “very unfair” trade policies.
In an interview to Piers Morgan for ITV, President Trump stated “I’ve had a lot of problems with the European Union, and it may morph into something very big from that standpoint, from a trade standpoint.”
Donald Trump added, “They’re not the only one, by the way. I could name many countries and places that do. But the European Union has been very, very unfair to the United States. And I think it will turn out to be very much to their detriment.”
Ever since the appointment of Trump as United States’ President, he has often railed against what he thought were unfair trade agreements between both parties. Trump became President of the nation with a slogan ‘Make America Great Again’ and thus wants to ensure wellness of the country at all times. In 2017, Trump made an infamous decision of withdrawing U.S. from the Trans-Pacific Partnership that raised several questions. In addition, the President has threatened to do the same with North American Free Trade Agreement (NAFTA) if he feels that the policies are unfair and not in favor of the United States.
Last week, Donald Trump announced that the administration will be looking to impose tariffs of approximately 30% on all imported solar panel technology, to protect domestic manufacturers.