Escalation of US tariffs increases global economic uncertainty

On 12 March, the European Commission issued a statement saying that it would start applying tariffs on €26 billion worth of US goods from April as a countermeasure against US tax increases on foreign steel and aluminium. On the same day, Canada announced retaliatory tariffs on 29.8 billion Canadian dollars worth of US goods.

Tariffs on aluminium and steel imports of 25 percent, decided by US President Donald Trump, came into force on 12 March. Retaliatory tariffs imposed by the European Union on US industrial and agricultural products were due to come into force on 1 April, but the deadline has now been pushed back to 13 April. 

The European Union is trying to target its measures on goods originating in the Republican parts of the USA. In addition to metals, they are to apply to American textiles, household appliances and various agricultural products such as poultry, beef and vegetables, as well as motorcycles, bourbon and the popular peanut butter. 

However, in response to the announcement of retaliatory tariffs, the US threatens the EU with a 200% import tariff on wine and spirits. By postponing the effective date to 13 April, the EU wants to buy time to discuss the situation with the US. However, the US has indicated that it rejects a discussion, having also announced in late March a 25% tariff on imports of all cars manufactured outside the US. 

CMG/gnews.cz