When 2 Can Play At That Game - EU imposes $12bn in Tarrifs on US - After US Imposed $11bn
European Union has imposed $12 billion in tariffs on USA
Deepening trade war doesn't rise above pettyness
Without mincing words the european has retaliated against the twitter in chief in kind with an equally devastating set of trade tarriffs that could result in an impasse to the resolution of global trade disputes. It's important to remember who started it!
Shortly after being elected, the president of the United States began targeting trading partners after discovering that a protectionist agenda resonated with his voter base. Generally speaking the alternative to protectionism, globalism has lead to massive growth in various industries all over the world, which in turn has lead to more propserous economic environments for every nation that participated and could come to a fair and equitable agreement, including the United States.
Of course there have been some hiccups along the way, and there is nothing wrong with seeking to continuously improve your economic position. But, as the global powerhouse for economic growth and largest producer of GDP, it begs the question, is protectionism worth it?
After setting sights on Mexico and Canada, and coming out of it with an agreement in principle, the results of which are yet to be realized and Analyzed. The President of the United States picked a fight with China. China is the second largest producer of GDP, one of the most evolved economies in the world, and large benefactor of globalism.
Globalism has helped China become a force to be reckoned with when looking to re-write the formula for trade agreements. It just so happens the benefits of trad with china have gone both ways. Western consumers benefit from lower costs of goods such as clothing and electronics, while the Chinese have seen economic tailwinds from increased exports. We had a good thing going and initiating a trade war was probably the least intelligent thing to do.
China was threatened with $ 10 billion dollars in tariffs if they didn't play ball and come to the negotiating table. It's been months now and all the white house can do is echo repeated claims of "progress" with nothing tangible to show. Meanwhile, it seems China and the EU have been talking on the side, and have come to an agreement to work together in trade for the benefit of both nations. Different strokes for different folks I guess.
Well, seemingly out of no where, the President of the United States is at it again, just having threated the EU with $11 billion dollars in tariffs. Without mincing words, the EU has hit back with $12 billion dollars in trade tariffs. This could go on and on. It may well bring everyone to the negotiation table, but not without underlying animosity and distrust.
It will be interesting to see which tactic works best, make friends and hit the negotiation table with a general understanding of eachother, or pick a fight, throw mud, and hope for the best.
What do you think about the ongoing trade war issues and what it means for the global consumer? Let me know in the comments!