The trade war launched by Donald Trump against Canada, Mexico and the European Union has caused a shock wave worldwide. Indeed, the protectionist measures of the American president led to an increase in customs duties on several products, thus affecting trade between the United States and their partners. Faced with this situation, Europe has decided to react by increasing its purchases in the United States by 50 billion euros. We take stock.
The key points of this article:
The trade war launched by Donald Trump against Canada, Mexico and the European Union has caused a world shock with an increase in customs duties.
Europe reacted by increasing its purchases in the United States by 50 billion euros to compensate for losses and maintaining balanced trade relations.
A European response to the Trump trade war
To cope with the Trump trade warEurope has decided to increase its purchases in the United States by 50 billion euros. This decision was made in order to compensate for the losses caused by the increase in customs duties imposed by the American president. By increasing its purchases, Europe also hopes to maintain balanced trade relations with the United States. According to the European Commission figures, Europe imported to 50 billion euros in additional goods from the United States in recent months. Among these goods are mainly agricultural products, industrial equipment and advanced technologies. This increase in imports aims to Support the American sectors affected by the trade war and at Preserve jobs in the United States.
The consequences of the trade war on the world economy
In addition, the Trump trade war has had important consequences on the global economy. By increasing customs duties on imported products, the American president caused a price increase and a decrease in demand. This led to a decrease in trade and a slowdown in economic growth. According to theWorld Trade Organization (WTO)Trump's trade war could cost until $ 700 billion in the world economy. The most affected sectors are the automobile, agriculture and electronics. Many companies have had to reduce their production, dismiss employees and review their business strategies to deal with this situation.
International reactions to Trump's policy
Faced with the Trump trade war, many countries have expressed their dissatisfaction and have taken retaliation measures. The European Union, Canada, Mexico and China have notably increased customs duties on certain American products in response to Trump protectionist measures. Moreover, Several international organizationssuch as the WTO and the International Monetary Fund (IMF) criticized Trump's trade policy and called for a peaceful resolution of commercial conflicts To avoid a drop in world production. Indeed, according to them, the trade war only worsens economic and political tensions between countries, to the detriment of global growth.