19:12
3
min at reading ▪
The trade war between the United States and the European Union is deepening. In the face of Donald Trump’s decision to store duties of 25 % of steel and aluminum, the EU replicates up to 26 billion euros. This escalation could have the main consequences for the economy (especially on the raw material market).
European counterattacks for maintaining your economy: 26 billion euros at stake
The EU without delay responded with new taxes stored by Washington. These Protectionist measures It penalizes the European industry. But not only! They also weaken business relations. With these new sanctions, the EU seeks to restore balance on the international market under tension.
Among the products listed in European repression are:
- foodstuffs,
- clothing,
- American goods made.
The European Commission plans to modify these imports for the purpose of exercising Pressure on the key industry of the US economy. In addition, the implementation of these sanctions from 1 April leaves the negotiating period with Washington. This means that the position of Trump’s administration remains adamant.
The impact of these measures will be the main for the European industry, which depends on imported raw materials. Inflation could also be strengthened by increasing production costs. The automotive industry, especially the consumer of steel and aluminum, is worried about the decrease in the competitiveness of the face of imports from other regions of the world.
The economic crisis that fears investors
The impacts are not limited to steel and aluminum. China, which is also influenced by these measures, has promised to take all necessary measures to protect its exports. Domino effect on the global economy It is therefore tangible. The fact is that the tension of trade weighs investment, increases the risk of recession and feed inflation.
The United States imports around 50 % of its steel and aluminum. These are truly necessary raw materials for sectors such as construction, cars and defense. Paradoxically, this dependence on foreign markets could paradoxically Weakening the US economy In the long run, while businesses will have to deal with increased costs.
Between American protectionism and European retaliation, business battle continues to affect the global economy. This tension could create new opportunities for crypto investors and at the same time weaken the strategic sectors. It remains to find out whether the negotiations will mitigate the impact of this tariff climbing!
Maximize your Cointribne experience with our “Read to Earn” program! For each article you read, get points and approach exclusive rewards. Sign up now and start to accumulate benefits.
My name is Ariela and I’m 31 years old. I have been in the area of writing a website for 7 years. I have discovered discovery and cryptocurrency for only a few years. But it is a universe that interests me a lot. And subjects treated in the platform allow me to learn more. In my free time, the singer also cultivates a great passion for music and reading (and animals!)
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.