Trump sticks with tariff plan, warns EU on trade

World
Europe

US President Donald Trump reiterated on Tuesday his plan to slap big tariffs on imports of steel and aluminum, warning the European Union (EU) it would get hit with a “big tax” for not treating the United States well when it comes to trade.

“They make it almost impossible for us to do business with them and yet they send their cars and everything else back into the United States,” Trump said of the EU at a news conference with Swedish Prime Minister Stefan Lofven, whose country is an EU member.

Trump said the EU was taking advantage of the United States on trade, adding: “They can do whatever they’d like, but if they do that, then we put a big tax of 25 percent on their cars – and believe me they won’t be doing it very long.”

Trump said on Friday he would impose a duty of 25 percent on imported steel and 10 percent on aluminum, a plan that sparked cries of foul from US trading partners and warnings from US lawmakers and businesses of the potential for a tit-for-tat trade war that could hurt the US economy.

Trump repeated his belief that the United States could win such a war, since it was running such a large trade deficit.

“When we’re behind on every single country, trade wars aren’t so bad,” he told reporters at the White House.

Lofven offered a warning of sorts to the US president, saying: “I am convinced that increased tariffs hurt us all in the long run.”

Gary Cohn, the top economic adviser to US President Donald Trump, announced his resignation on Tuesday. /Reuters Photo.

US stock futures fell more than 1 percent late Tuesday after the resignation of US President Donald Trump’s top economic adviser, Gary Cohn, fueled fears that the administration would follow through with plans to impose steel and aluminum tariffs, possibly triggering a trade war.

Source(s): AFP ,Reuters