Currently, the US tariff has been a topic of discussion in the international market. In March, Trump had announced tariff plan which included some exemptions amidst the negotiations between the countries. However, Wilbur Ross, the US Commerce Secretary said the progress regarding the conversation with Canada, Mexico, and the EU has not taken a firm shape. Due to this, the US will be implementing a tariff worth 10% and 25% on aluminum and steel respectively. Ross also stated that Trump can either tweak or eliminate the sanction at any point in time.
On the other hand, trade commissioner of EU, Cecilia Malmstrom has stated that the US has indulged into a dangerous game by imposing tariffs on the European aluminum and steel. She has also cleared her intentions to take steps in exchange for the decision taken by the US. She asked Trump to brace his country for the adverse scenarios regarding the economic retrieval of the EU and the US consumers.
EU has also prepared a list of goods on which it will be implementing tariffs. These include bourbon, Harley-Davidson motorcycles, and more. Mexico and Canada are also about to follow the path of the EU.
She further mentioned that the EU will be standing up against the step in the WTO as the seamless acceptance of the tariff was not preferable. Malmstrom also added that the present situation is not an easy one and can only be resolved if the US decides to withdraw the tariff plan implemented against the EU.
However, Trump has a different story to tell as he believes that the steelmakers of the country will be deeply benefitted with the tariff, which is an inevitable activity for the national security. He is firm in his decision and stated the tariff as a fair trade after the speech delivered by Malmstrom.