US-EU trade war may spark off if Trump gets re-elected as President

Washington/Brussels – Media and political groups are expressing a great possibility of Donald Trump of the Republican Party winning again in the presidential elections in the US at the end of this year. Trump and his allies have prepared a plan to impose additional taxes on imports from the European Union. Against this background, a stir has been caused among US allies in Europe and the EU leadership is said to be restless.

Earlier, during the 2016 presidential election campaign, Trump had made a serious allegation that China and Europe were looting US businesses. When he became the President, Trump drew attention to the deficit the US faced in trade between the European Union and the United States. Trump had indicated that the EU should take steps to reduce this deficit. Otherwise, the US would take strict action. The discussion between the two on this issue failed, and later, Trump imposed a 10 percent tax on ‘Steel’ and ‘Aluminium’ being imported from Europe.

Trump’s decision proved to be a big blow to the European Union. In protest against this, European countries also tried to give a ‘tit-for-tat’ reply by imposing taxes on US products. But, in response, Trump had threatened to impose an import tax on vehicles being imported from Europe. Concerned about this, the EU later showed leniency. Meanwhile, President Trump also criticized the activities set into motion to form a European Army. Trump had also warned sternly that the US would separate from NATO.

After Biden’s victory in the 2020 election, he took steps to improve relations with Europe. An independent group of the US and Europe was also formed to increase cooperation in the technology sector. But now, with the possibility of Trump being re-elected as President, there is uneasiness among the European countries and the EU leadership.

Leading US website ‘Bloomberg’ has released a report that Trump’s close associates are preparing a plan to take action against European trade. A proposal to impose a 10 percent direct tax on products imported from Europe has been put forth. Steps will also be taken against the ‘digital tax’ collected from US companies operating in Europe. For this, a plan has been prepared to use ‘Section 301’ of the US Trade Law.

Trump’s close aides have drawn attention to two important reasons behind a possible trade war against European countries. The delay in the European Union taking action by adopting an aggressive policy against China and its tendency to stay away from taking this action are the reasons responsible for it. Also, from 2021, Europe will profit 200 billion dollars in US and European trade for three consecutive years. This shows the trade imbalance between the two and has also drawn the attention of those close to Trump.

Meanwhile, considering the possibility of Trump’s election, the European Union has also started preparations to avoid possible action. In September last year, German Foreign Minister Annalena Baerbock visited the US. During this time, he had talked to Trump’s supporting leaders. The European Commission has also instructed its officials to prepare independent plans in the wake of Trump’s election.

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