President Donald Trump said on Tuesday that he thinks the United States and European Union should “drop all Tariffs, Barriers and Subsidies.” Trump’s tweeted suggestion came after he has proposed to put in place large new tariffs on imports into the United States from the European Union.
“The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for them. Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready – but they won’t!”
The president sent the provocative tweet just one day before he is scheduled to meet at the White House with European Commission President Jean-Claude Juncker.
Trump began a global trade war several months ago by imposing large import duties on steel and aluminum from several U.S. allies in the European Union. They then retaliated by implementing new tariffs on imports into Europe of many American products such as motorcycles, blue jeans and whiskey.
Since then the president has also threatened to impose a new 20 percent tax on all automobile imports from Europe. The European Commission has warned that such import taxes would “be harmful first and foremost for the US economy.”
Juncker and EU trade minister Cecilia Malmstrom will meet with Trump and attempt to talk him out of moving forward with the new auto tariffs, which would hurt companies on both sides of the Atlantic and increase trade tensions significantly.
“The aim of this visit is to cool down the situation and prevent an escalation of the trade conflict,” Malmstrom told Swedish newspaper Dagens Nyheter in an interview.
But she noted that if the U.S. proceeds with the duties, the EU is ready to respond. It will impose $20 billion of new tariffs on many U.S. products, including agricultural and high-tech products and machinery.
Trump has been very antagonistic toward Europe, and is not expected to give in to EU demands. Recently he called the EU “a foe” because of its trade policies during, and on Tuesday he posted a tweet declaring that “tariffs are the greatest!”
“Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that – and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be Great!”
The EU officials’ visit to Washington comes after Trump’s visit to the NATO summit in Belgium earlier this month, after which Trump questioned whether the U.S. should have to defend all NATO member states.
But it is not just Europeans who are opposed to Trump’s tariffs. Most American companies would also be hurt as the tariffs would interrupt their global supply chains. Trump’s proposed import duties would cause large increases in the costs of the components that American manufacturers import in order to manufacture automobiles. Since this will make cars more expensive for U.S. consumers, it is widely expected that Trump’s tariffs will cause layoffs and possibly permanent loss of jobs.
Trump thinks he is putting “America First” but in fact his misguided trade policies will end up hurting the United States including many of the working class people who voted for him. We can only hope that they wake up and see the truth and vote Republicans out of power in November.
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