US President Donald Trump’s recent threats to impose tariffs on the European Union, Canada, and Mexico have escalated global trade tensions. During a cabinet meeting on Wednesday, Trump announced plans to impose 25% tariffs on goods imported into the US from the bloc.
ADVERTISEMENTThe EU and US stocks were affected by the news, with luxury car stocks such as BMW, Porsche, and Audi experiencing downturns. Despite the volatility, Mercedes-Benz’s share price inched up slightly.
Global challenges remain
The car industry is facing several challenges, including supply chain shortages, labour shortages, and regulatory changes. The ongoing geopolitical and economic uncertainty has dampened sales and affected profit margins.
EU plans counter measures, if tariffs imposed
The European Union has stated that it will take immediate counter measures if the tariffs are imposed. The bloc argues that the creation of the EU has made it easier for US companies to do business in the EU while protecting domestic European consumers and businesses.
Trump escalates global tariff tensions
Apart from EU, Trump has also threatened to impose tariffs on Canada and Mexico. He has also levied a 10% tariff against China and has hinted at the possibility of much higher tariffs in the future.
ADVERTISEMENTConcerns about US inflation
Trump’s tariff threats have raised concerns among consumers and businesses about inflation and an economic slowdown. However, he maintains that the tariffs will boost domestic revenue, create jobs, and decrease the federal budget deficit.
