President Donald Trump on Thursday threatened 200% tariff on champagne and other alcohol products from the European Union, extending a global trade war that cried to markets and stopped the possibility of recession.
The move took place a day later when the European Union announced a plan to slap tariffs on US $ 28 billion goods including 50% tariff on whiskey. Those tariffs marked the reaction of American duties on steel and aluminum imports.
Trump asked the European Union to leave its tariff on whiskey, saying that the US would otherwise “place” a tariff on liquor products from the European Union.
Trump rapidly criticized the European Union, “described the organization as one of the world’s most hostile and derogatory and tariffing authorities.”
A customer inserts a glass of Buzolis Nouveau wine on the Le Mesturate Restaurant in Paris, France on 16 November, 2023.
Sara Meyssonnier/Reuters
In a statement a day earlier, European Commission Chairman Ursula von Der Leyen said the European Union should “work to protect consumers and business.”
Stock futures decreased on Thursday morning, erased some benefits in S& P500 and Tech-Havi Nasdac a day ago. Dow Jones Industrial Average Futures showed continuity of damage on Wednesday.
Last week, Trump has declined in markets since the announcement of 25% tariffs on imports from Mexico and Canada, some of which soon delayed.
Tariff threats on Thursday mark the latest clashes in a global trade war. Government officials said that in response to American duties on steel and aluminum, Canada announced a retaliation of $ 20.7 billion in US goods. The US imports more steel and aluminum than Canada than any other country.
The Trump administration slapped 10% tariffs on China last week, doubled taxes on sugar imports. In response, China implemented ventilative duties on American agricultural commodities, deepening a trade war between the world’s two largest economies.
Trade tension created a possibility of recession on Wall Street. Goldman Sachs increased its possibilities of recession from 15% to 20% last week. Moody’s Analytics increased its gauge to 35%of the possibility of recession.
This is a developing story. Please check back for updates.
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