According to experts, if the US continues to impose tariffs and political differences with Europe remain, America will also have to face drastic results. It will directly affect trade, industry, the economy, and the global supply chain.
Donald Trump has imposed a 10% tariff on eight European nations and has threatened to raise it to 25% from June 1 if a deal on Greenland is not finalised. This move by Trump has created a situation of heightened tension between Europe and the United States. The resolve to acquire Greenland has put US President Donald Trump up against NATO member countries after it announced a 10% tariff on goods from eight European countries, effective February 1, in response to their opposition to Trump’s bid to takeover Greenland. The US President has further threatened to increase it to 25% from June 1 if there is no deal on Greenland.
According to experts, if the US continues to impose tariff and political differences to remain, along with Europe, America will also have to face drastic results. This will directly affect trade, industry, the economy, and the global supply chain.
Europe and the United States are presently the biggest trading partners in the world. Their trade takes place in trillions of dollars each year. However, this has been affected in the past few years due to tensions over tariffs, subsidies, and industrial policy. The US is Europe’s big supplier of many high-tech and modern items like energy, technology, and defence. In turn, Europe’s export items include machinery, auto parts, chemicals, and pharmaceutical products to the United States in return.
With trade at this scale, if import duties or restrictions are raised from both sides, European companies may likely become less competitive in the US market, which could hit export profits and employment majorly. Similarly, US-based companies may also struggle with higher costs in Europe, which could result in a decline in their exports.