In these hours and days, we are witnessing something that the current generations do not remember – the trade war between the two closest allies, the United States and Europe.
US President Donald Trump today imposed extensive duties on the European Union and the rest of the world on Thursday. It will have victims on both sides of the Atlantic. Europe, Canada, China and the rest of the world are already preparing countermeasures.
The world economy and markets are just experiencing some of the most concerned days in recent years.
However, duties, according to experts, will damage everyone, Both America, which introduces them, as well as other states preparing countermeasures.
What are the duties?
Customs are border taxes that burden the import of goods from foreign countries. The importers pay them at the entrance to the country or block that selects them.
Taxes are usually charged as a percentage of the product value.
In addition to finished products, duties are also stored on components and raw materials, which significantly increases the cost of the manufacturer. According to economists, for example, various components can cross the border between the US and Canada and the US and Mexico up to seven or eight times.
The US is also the largest importer of goods in the world. At the same time, they have the largest deficit in the goods trade – when imports exceeds exports.
Trump has long complained that this deficit reflects the “unfair” practices of US business partners.
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17:46 – Slovak as well as foreign analysts agree that Reciprocal duties from the United States will have a negative impact not only on the European Union, but also on Slovakia itself. Foreign media even call us the biggest victim of Trump’s steps, especially given the 25 % duties that the US President has imposed on car imports.
17:45 – The French President offered one of the sharpest reactions to Trump’s duties.
In the White House, he will also notice his repeated references to potential digital service tax on US technology giants – although it is clear that this issue is not diagnosed with unity. For example, Ireland, where most of the EU technology companies have their headquarters, is openly against this idea.
“We have to do everything that is effective and appropriate … But at the same time it clearly shows that we are determined … Do not allow these sectors to be a victim of these duties,” Macron said a few minutes ago.
17:30 – Wall Street was shaken on Thursday after President Trump announced higher duties for most US business partners than expected, disrupting the economic forecasts and sent stock markets sharply down.
Known index S&P 500 has fallen on Thursday by more than 4 % After the Asian and European stock markets fell sharply. The inflation rates have risen sharply, which strengthened concerns about the slowdown in economic growth and caused the dollar to decline as investors rushed to the safety of the state debt.
