Europe has joined the IMF and China in criticising Trump’s plan to impose tariffs of 25% on steel and 10% on aluminium, saying it could spark a trade war.
European commission president Jean-Claude Juncker warned that this will lead to tariffs being imposed on American products like Harley Davidson, Levi’s Jeans and Kentucky bourbon.
“If the Americans impose tariffs on steel and aluminium, then we must treat American products the same way,” Juncker said on German TV.
“We must show that we can also take measures. This cannot be a unilateral transatlantic action by the Americans. I’m not saying we have to shoot back, but we must take action.”
“We will put tariffs on Harley-Davidson, on bourbon and on blue jeans – Levi’s.”
The IMF has also warned against this plan, saying it will cause damage to the international markets, as well as America’s own economy.
Trump said that America has “no choice”, however, and remains determined to stick with the plan.
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” he said.
“Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”