Trump is dynamiting foreign trade with his tariffs and leaving the European Union on the ropes

The Trump administration is dynamiting foreign trade, and with it comes the most feared day for the world’s major markets. The American president, recently reelected to “Make America Great Again” and a staunch advocate of implementing protectionist policies that decimate foreign trade, announced a package of protectionist measures early this morning that weaken free trade. The initial consequences of this are already reflected in the fall of the world’s major stock markets early Thursday. In the medium term, a fall of around 2% is expected in Europe.

“Liberation Day,” as the US leader called it on Wednesday, brings with it a dreaded tariff policy that, according to Trump, will allow the US to return to “the golden age.” In his speech, the president criticized the European Union, among others, for having defrauded his country for years.

THE ANNOUNCED TARIFFS

Now the cards are on the table, and the outlook is bleak, especially for major exporting powers like China, Japan, Canada, Mexico, the United Kingdom, and the European Union itself. For now, the White House’s messages are strong: a 20% tariff on all goods and services imported from the European Union.

Furthermore, the percentage varies depending on the specificity or origin. In the case of China, the most affected, it will reach 34%, while other powers such as Japan and India will have to bear 24% and 26%, respectively.

By sector, it remains to be seen how these policies are implemented in the coming hours, but the automotive sector is in suspense , as it will have to face tariff barriers of 25% regardless of origin. The agri-food sector, with products such as wine and oil, and particularly strong in terms of exports to Aragon, is another sector that could be severely affected.

SPAIN REGRETS THIS UNJUSTIFIED ANNOUNCEMENT

The government has “deeply” regretted US President Donald Trump’s announcement of the tariff increase and stated that it “will harm everyone and impact citizens and businesses around the world, unfairly and unjustifiably.”

Government sources have indicated that the tariffs imposed by Trump will fall “on American citizens and businesses, who will face higher prices and costs, coupled with the negative impact of uncertainty on consumption and investment.”

Furthermore, they believe that “the impact of these measures will affect the global economy and financial markets, with consequences that are still difficult to estimate, but which will lead to a more fragmented and impoverished world.” “The effect will be particularly harsh for developing countries,” they noted.

That’s why, “from the beginning, Europe has supported a negotiated solution with the United States. And we continue to do so. We must protect the largest trade and economic relationship in the world. Every day, €4.4 billion in trade in goods and services crosses the Atlantic between the United States and the European Union. And foreign investment between the two sides represents €100 billion in each direction,” they explained.

The government believes that “neither Spain nor the European Union wants a trade conflict, but we cannot ignore it. We have the necessary tools to protect the interests of our citizens and businesses if there is no room for negotiation.”