Customs shock: EU responds to Trump's trade war with drastic measures!

Customs shock: EU responds to Trump's trade war with drastic measures!

EU, Europa - The economic tensions between the European Union and the United States are increasing. As a direct reaction to the highly raised tariffs of the United States under Donald Trump's presidency, which have risen to an average of 20% and even 25% on average, the EU is now planning to introduce tariffs to a variety of US products and services. This reports OE24

The new EU tariffs are aimed at products that are produced in Republican Trump states. These include whiskey, jeans, sugar corn, rice, soy, o-juice, tobacco products, beauty remedies, clothing, iron, steel, aluminum and even Harley-Davidson motorcycles. With this measure, the EU wants to set a strong signal and defend itself against the Unilateral trade practices of the United States.

digital tax and domestic measures

In order to cushion the economic effects, EU politician Manfred Weber demands an answer with “full market power” against American digital corporations. A central component of this strategy could be the introduction of an EU digital tax that is specifically directed against companies such as Netflix, Amazon and Google. However, this tax could also have negative economic consequences for Europe, since there are often little or no alternatives to the services of these US companies.

In another initiative, German Foreign Minister Annalena Baerbock proposed a fee of 10 cents for iPhone updates to generate additional income for Europe. Your proposal is in accordance with the Digital Services Act (DSA) of the EU, which enables such measures. At the same time, Nike shoes that are produced in the USA could also become more expensive.

In order to avoid price increases on liquid gas and other products, the EU plans to take out energy imports from the USA from the new tariffs. In view of the negative effects of Trump's customs policy on European industry, which obviously exports less, this step could be crucial.

economic concerns and historical parallels

The current situation is reminiscent of the global economic crisis of the 1930s. The former general director of the world trade organization, Roberto Azevdo, warns of possible similar conditions. It indicates the Smoot Hewley College Act, which led to a global customs escalation and significantly reduced international trade. Tagesschau reports that economists are incomprehensible for Trump's customs policy worldwide and fear possible far-reaching consequences.

Carsten Brzeski, chief economist Europe of ING Bank, draws parallels to the then days of protectionism. He explains that the tariffs not only push exports, but also the imports and thus affect entire nations.

In contrast, Jörg Krämer, chief economist of Commerzbank, warns for caution. He emphasizes that the tariffs of the 1930s did not trigger depression, but only tightened. Currently, the conditions for the central banks are considerably better due to the abolished gold standard, since these now offer more freedom to intervene.

Nevertheless, a withdrawal from the United States from the international division of labor could lead to higher production costs, which would ultimately also burden American consumers. The former chief economist of the International Monetary Fund, Ken Rogoff, also sees the situation with helplessness and warns of the unpredictable consequences of these developments.