US President Donald Trump has warned of slapping tariffs on the European Union with plans for a 10 per cent duty on Chinese imports, starting on 1 February.
Speaking at the White House a day after he was sworn in as the President, Trump argued that the measures are necessary to address trade imbalances and combat fentanyl trafficking.
‘You can’t get fairness unless you do that’
“They treat us very, very badly. So they’re going to be in for tariffs,” Trump accused the EU.
“You can’t get fairness unless you do that.”
Earlier, Trump also targeted the EU for indulging in unfair trade practices alleging that the latter did not import enough American products, in response to which, he would be imposing duties or urge for increasing oil and gas purchases to ‘straighten that out.’
Turning to China, Trump linked his tariff threat to the country’s alleged role in fentanyl trafficking, which he claimed was fuelling illegal activity in Mexico and Canada.
“Probably February 1st is the date we’re looking at,” he stated when asked about the timeline for implementing the 10 per cent duty.
Previously,during his campaign, Trump had threatened to impose tariffs of up to 60 per cent on the Asian giant.
On Monday, he also talked about a telephonic conversation with Xi Jinping, “The call was a very good one for both China and the USA. It is my expectation that we will solve many problems together, and starting immediately. We discussed balancing Trade, Fentanyl, TikTok, and many other subjects.”
The US president once again brought up the tariff issue, on Tuesday, threatening to impose potential 25 per cent tariffs on major trade partners Canada and Mexico, alleging that the two nations failed to curb illegal immigration and the flow of fentanyl into the US.
European Union’s response
EU economy commissioner Ursula von der Leyen expressed readiness to negotiate with Washington while highlighting that Europe would stand firm in protecting its interests.
Speaking at the World Economic Forum in Davos, von der Leyen said, “We will be pragmatic, but we will always stand by our principles, to protect our interests and uphold our values.”
Tariff policies under Trump 2.0
On Monday, Trump also signed an executive order directing US agencies to review trade practices, deficits, and currency manipulation, signalling a broader shake-up of the country’s trade policies.
“Tariff and tax foreign countries to enrich our citizens,” he said.
The investigations could pave the way for additional tariffs, further unsettling global markets.
While Europe appears most concerned about Trump’s trade agenda, a survey by the European Council on Foreign Relations suggested countries like Brazil, India, and Turkey are optimistic about his potential impact on their economies and global peace.