Trump Threatens New Tariffs
United States President Donald Trump threatened to raise import tariffs on cars and trucks from the European Union to 25% this week. The threat arose after Trump accused the European Union of not complying with the trade agreement previously reached with Washington.
Citing Reuters, Trump made the announcement in a social media post on Friday. He said the tariff increase would be imposed because the European Union was deemed not to be fully implementing the trade agreement.
Trump also asserted that vehicles manufactured directly in US factories would not be subject to tariffs. He argued that this policy could encourage European car manufacturers to more quickly shift production to the US.
However, the European Commission immediately rejected Trump's claim. Brussels stated that the EU remains in compliance with the existing trade agreement and will consider various options to protect its interests if Washington violates its terms.
These trade tensions have the potential to increase pressure on the US-EU economic relationship. If tariffs are actually imposed, the cost of importing European vehicles into the US could increase, risking impacts on prices, supply chains, and production strategies for global automotive companies.
For the market, the threat of tariffs could increase the risk and boost demand for safe-haven assets like gold. Meanwhile, the US dollar could find support as investors seek liquid assets, but pressure on trade prospects and economic growth could also limit its gains. (asd)
Source: Newsmaker.id
