Trump escalates America First trade strategy

President Donald Trump revealed Saturday that the United States will impose tariffs on goods from the European Union and Mexico a sweeping business action that stunned U S allies upended months of diplomacy and risks plunging transatlantic relations into a full-scale transaction war The tariffs set to take effect August were established in letters Trump posted to social media warning that any retaliatory action would trigger additional duties Whatever the number you choose to raise them by will be added onto the percent we charge the president wrote The European Union responded sharply on Sunday stating Imposing percent tariffs on EU exports would disrupt essential transatlantic supply chains to the detriment of businesses consumers and patients on both sides of the Atlantic We will take all necessary policies to safeguard EU interests including the adoption of proportionate countermeasures if required European leaders had been engaged in ongoing negotiations to avoid steep tariffs Representatives had prepared for a tariff scenario hoping to secure carve-outs for critical sectors like pharmaceuticals auto manufacturing and agriculture That hope collapsed with Trump s announcement The EU s retaliatory package affecting billion about billion in U S goods remains on hold but could be activated as early as Tuesday Agreement experts warn of notable economic fallout if both sides escalate President Trump framed the move as part of his America First second-term agenda aimed at reshaping global deal dynamics But critics warn it could isolate the U S and trigger price hikes at home especially on autos food and medicine Read more about tariffs Trump announces steep new tariffs on Japan South Korea Trump s tariff talk is all for show insiders admit Trump suspends tariffs on greater part imports from Mexico Canada The post Trump escalates America First contract strategy appeared first on Salon com