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President Donald Trump’s trade advisers are finalizing plans to implement reciprocal tariffs on countries that impose duties on U.S. imports, intensifying concerns over a potential global trade war. The proposed tariffs aim to match the rates that other nations apply to American goods, potentially leading to significant increases in import taxes. This move could disrupt international trade norms and provoke retaliatory measures from affected countries.
The European Union has expressed strong opposition to these plans, with European Commission President Ursula von der Leyen stating that any tariff actions against the bloc “will not go unanswered.” EU trade ministers are convening to discuss potential responses, emphasizing the importance of negotiation to prevent a transatlantic trade conflict while preparing countermeasures if necessary.
Economists warn that such tariffs could exacerbate U.S. inflation, which has already seen significant increases in consumer prices across various sectors. The administration is considering invoking Section 338 of the Tariff Act of 1930 to justify these reciprocal tariffs, a move that would represent a significant departure from established global trading norms under the World Trade Organization.
As the situation develops, industries reliant on international trade are bracing for potential disruptions, and global markets are closely monitoring the administration’s next steps.
Sources : Reuters
