The United States is planning to tax $11.2 billion worth of goods coming from EU countries. The products range from aeroplanes to Gouda cheese. According to some experts, this is another way for the Trump administration to use tariffs to benefit from global trade, AP has reported.
Jennifer Hillman, a former US trade official who now teaches law at Georgetown University, said the US government typically would announce the target list quietly, perhaps through a notice in the Federal Register. Instead, she noted, the Trump administration declared its intentions "with fanfare and hoo-ha" in a press release designed to attract public attention.
"You're scaring a lot of importers" who see the products they bring into the United States on the target list, said Hillman, referring to Trump. "You're creating chaos in the market."
After the US Trade Representative's office issued a list of EU products it wants to tax, Trump took to Twitter to make the case, tweeting Tuesday, April 9th: "The EU has taken advantage of the US on trade for many years. It will soon stop!"
Eric Schweitzer, the head of the Association of German Chambers of Commerce and Industry, fiercely opposed the trade tensions.
"There are already more than enough tariffs," he said. "Instead of the US making further threats, both sides should now keep a cool head and aim for de-escalation.”
Whether the US gets the legal right to implement the new tariffs will depend on a ruling by the WTO, an organisation based in Geneva that sets the rules for global commerce and settles disputes.