The US trade war is on the rise

While President Donald Trump sows agitation among Europe's allies at the NATO summit in Brussels, his government is also at the forefront of the trade conflict with China. White House commercial envoy Robert Lighthizer announced Tuesday night that the United States wanted to impose an additional 10% import rate on Chinese goods worth $ 200 billion. dollars (171 billion euros).

The latest trade sanctions do not go directly. First, the White House is holding a consultation, after which a final decision must be made on August 31. On the list that Lighthizer has released is a colorful range of products, including electric lamps, gloves for baseball, handbags, live eels and quinoa. This is a wider product range than with previous Trump measurements against China. Since July 6, import duties of 25 percent are in effect on Chinese goods worth $ 34 billion (an amount that will increase to $ 50 billion). This mainly concerns products from the industrial and technological sphere, including semiconductors.

Counter Tariffs

The United States accuses the Chinese of stealing American technology while protecting their own market. Similar concerns about China live in Europe. Because China has not bid after July 6 technology tariffs – but has announced counterpart rates for the same amount on US goods – the Trump government now wants to increase the pressure on Beijing. This model, from retribution to retribution, is characteristic of a trade war. It's happening right now between the United States and China. In response to Lighthizer's announcement, the Chinese Ministry of Commerce said Wednesday that China would be "forced" to take the necessary countermeasures.

Meanwhile, the White House is considering additional import duties of 20 or 25 percent on foreign cars. A measure that seems to mainly target the auto exporter in Germany with its large auto industry. According to the European Commission, which has already hinted at retaliation, US imports of foreign cars valued at just under $ 300 billion would be affected.

If these tariffs continue, there will be a global trade war. The steel charges that Trump introduced earlier this year have a minimum value (6.4 billion for the EU), compared to what the White House has in reserve.

"Trade wars are good"

Due to the large US trade deficit with China (375 billion dollars in 2017) and with the EU (151 billion), Trump thinks that it can win a trade war. In March, Trump has already tweeted, "Trade wars are good and easy to win." Still, it is also clear that the United States will also be affected. Harley-Davidson, the engine builder, recently announced to Trump's irritation to move his production from the United States to other countries, to come out under the European counter-sanctions. And Tesla will build a factory in China to circumvent Chinese import rights on American cars. Tuesday's sanctions against China will, if they continue, also make products made in China more expensive than the average American buys at Walmart, like those baseball gloves. The extra money in the wallet that Trump gives Americans with tax cuts, he partly removes with his trade war.