Trump proposes tariff attack: Is there a threat of a global trade war?

Trump proposes tariff attack: Is there a threat of a global trade war?

In a speech in the Rose Garden of the White House today, US President Donald Trump announced new tariffs on imports that are effective immediately. In particular, a 20 percent tariff will be imposed on imports from the EU, which could lead to a potential trade war that could destabilize the global economy. In his announcement, described as historic and crucial for US industry, Trump said he planned to issue a decree for reciprocal tariffs "for the entire world." Loud vienna.at The tariff quota for China is 34 percent, while the minimum tariff is set at 10 percent.

The previously feared counter-tariffs have already been announced by Canada and the EU. Trump's tariffs could raise prices for consumers and fuel inflation. While a growing number of Americans, about 44 percent, support Trump's trade approach, others are concerned about the potential negative impact and escalating trade conflict on European consumers.
Restricting exports could particularly burden companies and lead to a decline in sales.

Reaction to Trump's announcement

The current domestic political situation is forcing Trump to present successes while the US economy is showing signs of crisis. The trade conflict also affects agriculture, which is becoming a key battleground in the trade war. Experts warn of the EU's possible backlash against US import tariffs, which could have an impact on agricultural trade on both continents. Tariffs on U.S. corn could raise prices and benefit farmers, but would put pressure on the feed sector, posing significant challenges for the U.S., he said topagrar.com.

US dairy farmers are particularly affected, as they are already reporting rising costs and falling prices. The National Milk Producers Federation is expected to warn of a doubling of retail milk prices if the loss of foreign workers occurs. In addition, the US government may plan emergency aid for agriculture to cushion the negative effects of the tariffs.

Experts also point out that Trump's tariff policies may lead to global economic uncertainty. IHK.de makes it clear that Trump's new tariffs on cars and auto parts, which take effect on March 26, 2025, impose additional burdens on existing tariffs and charges. The tariff on cars could be 25 percent, justifying the protection of the US automobile industry under the guise of national security.

Future Impact

The EU has already started taking measures to protect its businesses and consumers. Existing EU rebalancing measures from 2018 and 2020 will be reinstated. As part of these measures, new counter tariffs could be possible for US exports worth over 18 billion euros by mid-April 2025.

These developments could not only strain transatlantic trade, but also destabilize global supply chains and impact the German economy, which relies heavily on the export-oriented market. If tariffs continue to rise, this could result in both reduced sales and increased investment.

The current situation remains tense as the full impact of the tariffs on both its own economy and the international trade market remains to be seen.