US to slap new tariffs on European goods
The US and Europe continue to impose new tariffs on each other in the ongoing trade war. Curiously enough, this is a full-scale trade conflict but it has been completely overshadowed by the coronavirus outbreak and the US-China trade war. Yet, the EU-US confrontation may turn into a full-blown trade dispute that is sure to affect the whole market.
Recently, the US has imposed new tariffs on European goods totaling $3.1 billion amid the US-EU row over aircraft subsidies. The US Trade Representative announced a list of 30 total products that could be subjected to new tariffs, e.g. coffee, chocolate, alcoholic beverages, and olives. Notably, the US and the European Union have always found a way to come to a common agreement avoiding open conflict. It seems that the era of friendship is over. Experts are now trying to predict whether this confrontation continues to unfold calmly or turns into a large-scale trade war between the former allies. Currently, the EU is seeking permission from the WTO to impose retaliate tariffs on US goods worth $11.2 billion, including fish and agricultural products, as well as coal.
Investors can only wonder how the US is going to win the trade wars with the most economically powerful countries. Nevertheless, the US does not seem disturbed by this fact. Following its protectionist policy, the United States has imposed tariffs on goods from almost all over the world. There is still a truce in the trade war between Beijing and Washington. However, it is fragile as the parties are again disputing over the coronavirus. The US was the first country that openly accused China of the virus spread. Washington is sure that China intentionally concealed the severity of the pandemic from the world. Therefore, the trade relations between the two countries may turn sour again.