In the beginning of March, Trump imposed a 25% tariff on steel and a 10% tariff on aluminium. China reacted angrily to this especially after the White House called for a temporary exemption from the tariffs for the EU, Argentina, Australia, Brazil, Canada, Mexico, and South Korea, thus specifically targeting China. China retaliated with its own set of tariffs amounting to $3 billion. In addition, unless the exemption becomes permanent, the EU has said that it may respond with its own 25% tariff on $3.5 billion of American goods. In response to this, Trump has said he would put a 25% tax on European Cars….you get where this is going? This is how a tax war starts, and it’s poison to globalisation, but the real victims here will be the individuals all over the world who will see prices of even basic commodities, like soybeans, rocket up.
Written by Mertice Ho