EU said it will reply ‘firmly and immediately’ to ‘unjustified’ trade barriers, signaling it’s ready to retaliate against levies

Summary

Donald Trump has announced plans to impose 25% tariffs on the European Union, claiming the bloc was “formed to screw the United States.”

While details are pending, he suggested the levies would target cars and other imports. The EU, a major U.S. trading partner, has vowed immediate retaliation, with potential tariffs impacting $29.3 billion in exports.

French President Emmanuel Macron had attempted to dissuade Trump, urging focus on China instead.

Critics, including economists and conservative media, warn the tariffs could harm the U.S. economy.

  • jmsy@lemmy.worldEnglish
    1·
    8 hours ago

    Eugster, J., Jaumotte, M. F., MacDonald, M. M., & Piazza, M. R. (2022). The Effect of Tariffs in Global Value Chains. International Monetary Fund.

    Furceri, D., Hannan, S. A., Ostry, J. D., & Rose, A. K. (2020). Are tariffs bad for growth? Yes, say five decades of data from 150 countries. Journal of Policy Modeling, 42(4), 850–859. https://doi.org/10.1016/j.jpolmod.2020.03.009

    Schularick, M., & Solomou, S. (2011). Tariffs and economic growth in the first era of globalization. Journal of Economic Growth, 16(1), 33–70. https://doi.org/10.1007/s10887-011-9061-6

    York, E. (2018). The Impact of Trade and Tariffs on the United States. Tax Foundation.

    • Lifter@discuss.tchncs.deEnglish
      1·
      13 minutes ago

      I read the abstract of the two links. The first one just says “tarrifs bad” without even mentioning our discussion above.

      The second abstract said they did not find any evidence of “tarrifs good”, other factors had greater impact for growth. This is not the same question either.