Investing.com -- President Donald Trump is contemplating the imposition of a 10% tariff on the European Union (EU), escalating the ongoing global trade conflict, according to a report in the Telegraph, citing sources. The potential tariff follows recent levies placed on goods imported from Mexico, Canada, and China, which ignited retaliatory tariffs and legal threats from these nations.
Despite the lack of unanimous agreement within Trump’s administration, some members are advocating for the 10% tariff on the EU. These tariffs would apply to all imports from the EU. President Trump, upon returning to Washington from Florida on Sunday, confirmed the possibility of tariffs on the EU, citing the US’s over $300 billion deficit with the EU as a reason.
The EU, in response, could impose duties of 50% or more on various US imports if Trump proceeds with his tariff plans. On Sunday, Trump also expressed concerns about the UK’s trade with the US, but indicated that the issue could be resolved.
In response to the potential new tariffs, German Chancellor Olaf Scholz stated on Monday that Europe could respond to tariff policies with its own tariffs.
During his first term, President Trump had placed a 25% tariff on steel imports and a 10% tariff on aluminum from the EU, which led the bloc to impose levies on US goods such as whiskey, motorcycles, and denim in 2018.
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