Question

1. Research on President Trump’s recent proposed tariffs on imports from EU and explain the proposed plan in your own words. What do you think would be EU's reaction or retaliation to President Trump’s proposed tariffs? Justify your answer. It can be justified with historical examples in the past.

Answer 1

US President Donald Trump has taken the European Union to task for complaining about the President’s proposed tariffs on imported steel and aluminium. Mr Trump has proposed a 25 per cent tariff on steel and 10 per cent import duty on aluminium, and tweeted ahead of the formal announcement that “trade wars are good and easy to win”.

"President Trump has as of late said 'exchange wars are great and simple to win' yet the fact of the matter is a remarkable inverse. Exchange wars are awful and simple to lose. Therefore I emphatically trust that this is the ideal opportunity for government officials on the two sides of the Atlantic to act dependably," European Council President Donald Tusk said. The [UK] Government has been certain that levies are not the correct method to address the worldwide issue of overcapacity, which requires a multilateral arrangement. We will work with EU accomplices to consider the degree for exclusions laid out today." The United Nations Conference on Trade and Development, the World Bank and The International Monetary Fund have all denounced the high levies on steel and aluminum. The duty was likewise called "a massive tax on American families" by Republican Senator Ben Sasse, including that "protectionism is feeble, not solid. You'd expect an arrangement this awful from a radical organization, not an as far as anyone knows Republican one".

Mr Trump’s America First foreign policy has centred on the idea that nearly every agreement or deal the US has entered in the last 15 years is “unfair” and unbalanced against the US and manufacturing industries like steel and coal, whose workers Mr Trump said would not experience “betrayal” any more after the tariffs go into effect in a few weeks.

EU's reaction from WTO was the director-general of the World Trade Organisation (WTO) is urging President Donald Trump not impose steep tariffs on aluminium and steel exports, saying that doing so could lead the world into a "deep recession". "We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan," Even so, the news that Mr Trump planned on tackling America's $800bn annual trade deficit through increased tariffs reportedly caused something of a riff within the White House, with aides disagreeing about the wisdom of the international tax.