Blue Press Journal

Tag: European Union

  • Trump Administration’s Trade Policies Leave Countries and Consumers Uncertain

    Blue Press Journal: In a significant departure from traditional trade policy practices, the Trump administration has abandoned the longstanding protocol of involving Congress, small businesses, corporations, academics, and other stakeholders in trade negotiations. Instead, countries are now negotiating directly with President Donald Trump and a small group of trade officials, often resulting in vague and uncertain agreements.

    The recent trade deal with the European Union, comprising 27 countries, is a prime example of this new approach. The agreement includes a 15% baseline tariff for most European goods, which is higher than previous rates and is expected to increase prices for consumers. The EU has also agreed to purchase $750 billion of energy products from the US and not to tax a yet unknown category of US imports. However, the EU has stated that it cannot guarantee the sizes of these investments, leaving many details unclear.

    The White House and the European Commission have released contradictory claims about the agreement, adding to the confusion. According to Euronews, the EU’s statements have contradicted those of the White House, highlighting the lack of transparency and clarity in the negotiations.

    Furthermore, the trade deals announced by the Trump administration are not actually finalized agreements, but rather proposals or frameworks for future discussions. The recent agreement with the United Kingdom, for example, sets a 10% tariff rate on most goods and a maximum of 100,000 imported cars, but maintains a 25% tariff on steel.

    Experts warn that these tariffs will have a significant impact on consumer prices, as companies will pass on the increased costs of importing goods to consumers. The shipping industry, which lags the market by several months due to logistics, will also be affected, leading to further price increases. Tariffs on raw materials and intermediate parts, such as steel and aluminum, will also drive up the cost of building complex goods, resulting in higher prices for consumers.

    Additionally, the tariffs imposed by the Trump administration may lead to a decrease in trade volumes between the US and affected countries. Tariffed countries may be less inclined to continue trading with the US at the same level, potentially harming American businesses and consumers.

    As the full impact of these trade policies becomes clear, consumers and businesses are bracing themselves for the potential consequences. With tariffs already starting to show up in consumer prices, it remains to be seen how the Trump administration’s unconventional trade policies will ultimately affect the US economy and global trade relationships.

  • Trump must have missed fundamentals of Economics 101

    Once again, we find ourselves facing the controversial actions of President Donald Trump, who has announced plans to raise tariffs on steel and aluminum imports from the European Union to a staggering 50%. This decision comes amidst ongoing negotiations, raising questions about his strategy. Is he attempting to assert his authority, or is he simply improvising without a coherent plan?

    On Friday, President Trump revealed his intent to escalate tariffs from the current 25%, further intensifying the ongoing trade conflict with global steel producers. This move deepens the already complex situation and stirs uncertainty within the international economy.

    In response, the European Commission expressed its strong disapproval of the U.S. decision to increase tariffs, indicating that the European Union is ready to implement countermeasures. Such a response adds another layer of unpredictability to the global market, potentially driving up costs for consumers and businesses across both regions.

    The EU is actively working on potential retaliatory measures. If no agreeable resolution is reached, existing and new EU countermeasures could be implemented as early as July 14, or even sooner if urgent circumstances arise.

    Many observers are left questioning Trump’s economic acumen, with concerns that his primary focus seems to be favoring the wealthy, rather than effectively managing national and international economic interests. It’s almost as if he missed the fundamentals of Economics 101.