TRUMPS ADDS 30 PERCENT TARIFFS ON MEXICO & EU

Written by Michael Thervil

President Donald Trump Photo by ANDREW CABALLERO-REYNOLDS / AFP

[Trump adds 30 percent tariff Mexico EU] Over the weekend (Saturday), American President Donald Trump announced that he was ready to impose 30% tariffs on the goods and products exported from the European Union and southern neighbor Mexico starting on August 1. While President Trump placed a 30% tariff on the European Union because of their trade deficit with America. President Trump also stated the reason why he slapped Mexico with a 30% tariff increase was because he felt that the Mexican government was not doing enough to curb/stop the flow of fentanyl into the United States. It should be noted that the new round of tariffs applied to the exportation of goods and products into the United States are imposed in addition to the already Trump issued 25% tariffs known as “sectoral tariffs” on the exportation of aluminum, steel, and auto imports from these countries into America.

President Trump warned both the EU and Mexico that should they decide to retaliate against the newly issued tariffs, he would mirror those percentages on top of the existing 25% and soon to be existing 30% tariffs. with both the EU and Mexico being America's biggest trading blocks, which when combined exports roughly $1.1 billion worths of goods and products into America alone. President Trump also stated that the tariff could be reduced if both the EU and Mexico build factories or decide to manufacture their products in America.

OUR POSITION AT VEDA WORLD NEWS

President Trump's overuse and seemingly abuse of the applications of sanctions will ultimately not only deteriorate both diplomatic and trade relations but will fail over time. while some geopolitical analysis from Washington D.C. take the position that President Trump is playing the long game, it is an understatement to say that there are a lot of wild cards both in play and that will come about that will not only skew the trajectory of President Trump’s but will serve as blowback for his use of tariffs in such a draconian way.

Based upon current indicators, the result of President Trump's use/misuse/abuse of the issuance of tariffs on countries, especially America’s biggest trading partners such as the EU, China, Canada, and Mexico, will only further alienate America from global trade. This issue is further compounded by America because America simply doesn’t possess the manufacturing capability, the workforce labor, drive, and/or the will power to fill in the gap that is left from the decrease of the importation of goods and products from its traditional trading partners.

President Trump stating that he would reduce or eliminate tariffs on the EU and Mexico if they decide to build and manufacture their goods and products in America is tantamount to corrosion and would make both/any country that gives it these kinds of demands on trade commercially and economically subservient to the United States. As the price of goods and products have already increased on store shelves in America, as time goes on in conjunction with the built in annual inflation that purchasing power of Americans will continue to decrease as the cost of daily use items will continue to increase. This is the simple ebb and flow of the market and cannot be ignored.