Trump Has Launched a New Phase of the Trade War — Bloomberg
U.S. President Donald Trump announced a new round of trade tensions by imposing high tariffs on a number of partners and threatening additional restrictions on the European Union. According to Bloomberg, these moves could heighten tensions in Washington’s relations with key allies.
The publication reports that earlier this week, the White House announced its intention to impose a 50% tariff on approximately $20 billion worth of imports from Canada due to disputes over automobiles, dairy products, and alcohol.
The restrictions could take effect as early as August 19 if Ottawa does not comply with Washington’s demands.
In addition, Trump issued an ultimatum to generic drug manufacturers, giving them two years to relocate production to the U.S. under threat of a 100% tariff.
At the same time, additional 25% tariffs on imports from Brazil took effect, forcing the Brazilian government to allocate a $3.6 billion aid package to exporters.
The U.S. Department of Commerce also announced tariffs of 10% and 12.5% on most major trading partners due to alleged insufficient oversight of forced labor in their supply chains.
At the end of the week, the U.S. president threatened the European Union with new tariffs in response to a $1 billion fine imposed on Google by European regulators.
Experts note that businesses and markets are already beginning to adapt to the constant pressure from Washington.
“Donald Trump is seeking to rebuild the tariff wall,” said Josh Lipsky, vice president of the Atlantic Council.
The administration’s actions have sparked outrage among partners and domestic businesses. American entrepreneurs have already filed lawsuits with the U.S. Court of International Trade, accusing the White House of illegally using legislative provisions to circumvent previous court rulings.
Analysts emphasize that Trump is once again targeting the wrong entities for economic pressure.
“The Trump administration continues to impose tariffs on partners and allies and is failing to address the more serious problem posed by China,” noted Chad Baun, a senior fellow at the Peterson Institute, according to a Bloomberg report.
Earlier, Trump threatened the EU with a tariff investigation over fines imposed on technology companies.
