Former President and current re-election contender Donald Trump has once again adopted a tough stance on international trade, hinting at imposing heavy tariffs on goods imported from the European Union and Mexico. According to media reports, the Trump administration is planning to impose tariffs of up to 30 percent, effective August 1st.
August 1st Set as Final Deadline
According to Trump's plan, all major trading partners must reach trade agreements with the United States within three weeks, or they will face additional tariffs. US Commerce Secretary Howard Lutnick has made it clear that no country will be able to avoid tariffs after August 1st if agreements are not reached in time. He stated that discussions are ongoing between Europe and the US, and there is hope for a deal.
Trump's Letter to the Head of the European Commission
Trump announced the tariffs in a formal letter to Ursula von der Leyen, the head of the European Commission. The letter warned the European Union that import tariffs of 15 to 20 percent would be imposed if an agreement is not reached within the specified deadline.
Mexico, Canada, Japan, and Brazil Also in Sight
Trump's plan is not limited to Europe. He has also warned other major trading partners, including Mexico, Canada, Japan, and Brazil, about tariffs. In the letter, Trump mentioned potential tariffs ranging from 20 to 50 percent. A particularly heavy tariff of 50 percent has been proposed on copper.
Hints at Renegotiating the USMCA Agreement
Commerce Secretary Lutnick stated that Trump wants to renegotiate the United States-Mexico-Canada Agreement, or USMCA, again. Although goods currently covered by this agreement will be exempt from tariffs, this exemption is not permanent. According to Lutnick, if Trump is re-elected, the process of amending the agreement could begin next year.
Turmoil in Commercial Circles Over Tariffs
This tariff proposal has caused concern among commercial organizations worldwide. Instability has arisen among America's trading partners, as this decision could have a major impact on their industries. It could become more expensive for European companies to enter the US market, while it could prove to be a blow for Mexican exporters.
Repetition of Trump's Position, but More Stringent this Time
Trump has previously imposed tariffs on many countries, including China, Europe, and India, during his tenure. But this time, he is showing an even tougher stance. He says that this step is necessary to protect America from trade deficits and to encourage domestic industry.
World Trade Organization Also Monitoring
The World Trade Organization is also closely monitoring Trump's tariff proposal. The WTO has repeatedly stated that America's tariff decisions are contrary to WTO rules. In such a situation, it will be interesting to see whether Europe and other countries raise this issue with the WTO or find a solution through negotiation.
Tariffs Could Have an Impact in Multiple Areas
If this proposal is implemented, it could affect vehicles, machinery, agricultural products, and metals entering the US market. This could raise prices there and potentially impact inflation. On the other hand, exporters in the affected countries could also suffer significant losses.
Political Commentary Begins Over Trump's Policies
Political reactions have begun within the United States over this decision. Trump supporters are calling it part of the "America First" policy, while opposition parties see it as causing commercial instability and bitterness in global partnerships. Democratic leaders believe that such decisions could damage America's credibility.
Turmoil in World Markets After Tariff Announcement
Instability is visible in international markets following Trump's threats. The dollar's position has strengthened, while the share prices of European companies have fallen. On the other hand, a wave of concern has also arisen among Mexican exporters, as their main market is America.
