Paris – ‘Whether a trade war will start between the United States and Europe is no more a question, because it has already started,’ claimed French Finance Minister Bruno Le Maire. The French Finance Minister also warned that if the United States takes any further action against Europe, it would be necessary for all the European countries to unitedly retaliate against it.
Only last week, President Trump had stated that the European Union was as bad as China and had threatened to impose fresh taxes on European countries. In reply, the bloc had warned that if the United States imposed taxes on the EU, it will only have a detrimental effect on the US economy. Despite this, Trump has maintained his aggressive stand against Europe.
France and Germany, top trading partners of the United States in Europe, have reacted sharply to Trump’s statements and the French Finance Minister’s warning is part of the same reaction. ‘If the United States increases taxes on European cars, Europe should retaliate unanimously. There is a need for strong retaliation against the United States, to show that Europe is a sovereign power,’ warned French Finance Minister Maire. He also noted further that there need not be a doubt in anyone’s mind regarding the trade war, as it had already started.
Following the French Finance Minister, severe displeasure about the US policies has also been expressed by the SPD party, which is a part of the ruling coalition in Germany. It has been revealed that Richard Grenell, US Ambassador to Germany, is holding discussions with the German companies. Upset with this, the SPD leader Andrea Nahles, reprimanded the US leadership saying that Germany was ‘not a banana republic’.
President Trump has consistently alleged that China and the European countries have taken undue advantage of the United States in trade and has warned that it will henceforth take aggressive action against this. After targeting the European countries by imposing taxes on the cheap Steel and Aluminium, President Trump had threatened to impose a tax of 20% on the cars imported from Europe.
Last week, in an interview with the media, Trump once again targeted Europe. At this time, it was significant that he compared Europe directly with China. The US President had alleged that although he liked Europe, it had always given an unfair treatment to the United States.
The European Union has reacted strongly against these allegations made by Trump. The letter written by the European Union to the US Department of Commerce states that if the United States imposed a 25% tax on European cars, it will affect the US national production and will result in a loss of $14 billion to the exchequer.