The protectionist escalation being imposed by the Trump administration is having its immediate effects on international trade. After the American president announced a few months ago tariffs of 25% on steel imports and 10% on aluminum imports, many countries have already announced their own tariffs to combat this.
The European Union published, a few weeks ago, a long list that it wants to use as retaliation and that will be implemented in two phases, one effective from June 20 and the other in 2021. The products cited range from alcoholic beverages such as Bourbon, to Levi’s clothing, to Harley-Davidson motorcycles, with tariffs that can reach 50%. In response, Donald Trump struck back again, threatening to impose taxes on the powerful European automotive industry, a strategic sector that employs many citizens of the old continent.
Likewise, the U.S. war is not only with the European Union. China has already responded, as has Mexico. The latter has set rates of between 15% and 25% for steel products, such as plates or sheets, and 20% for final imports of pork or apples; and from 20% to 25% for different types of cheese or whiskey.
The latest to join has been Canada. A few days ago, it announced that goods, mainly steel or iron, would be subject to a 25% tax, but that it would also apply a 10% tax to chalk or dish soap entering its borders.
All in all, it is clear that U.S. trade policy has a global effect and the financial world is watching. For this reason, it is vital to keep abreast of new developments, every movement and every new policy approved by the major economic powers . Being able to anticipate changes is essential to avoid surprises at customs. Precisely on this point, GUIEX has proven experience, since our knowledge of world policies facilitates the imports and exports of our customers.
