Washington : Donald Trump, who has imposed tax on imported Steel and Aluminium has issued a fresh warning of an impending trade war. President Donald Trump warned that if the US goods were targeted in retaliation to the imposition of tax on Steel and Aluminium, then European cars will also be taxed heavily. While criticising the German car companies last year, President Trump had threatened to impose a 35% tax on the German cars entering the United States.
The US President declared openly the United States’ entry into the trade war in a tweet on Friday. There were severe reactions from the world over about this trade war warning. Chief of the European Union, Jean Claude Junker warned that Europe is not going to take it lightly and that preparations were already underway for an equivalent reply to the US action. Junker indicated imposition of heavy import taxes on the US made bikes, jeans and liquor.
The US President has taken an aggressive stance against Junker’s reply. US President Trump threatening Europe in his tweet, said, ‘The United States companies operating in Europe are already being taxed heavily. It looks like the European Union intends to increase it further. In that case the European cars imported into the United States will be taxed. The European Union has made it impossible for the US car makers to do business in Europe. This is a major imbalance in trade.’
On Thursday night, President Trump made the announcement of imposition of huge taxes on the Steel and Aluminium imports. According to the US President’s announcement, Steel and Aluminium imports will be taxed at 25% and 10% respectively. There have been severe reactions from Canada, China, European Union, International Monetary Fund and World Trade Organisation about this. The US allies Japan and Australia also have expressed displeasure about the announcement.
The Chinese Parliament spokespersons have targeted the United States once again on the trade war issue. ‘China does not want a trade war with United States. But if the US actions are going to compromise the Chinese interests, China will not keep quiet. China will take the necessary steps,’ warned Zhang Yesui, the Spokesperson for the Chinese Parliament. The Chinese Foreign Ministry also gave a severe reaction on the US President’s statements. The Chinese Foreign Ministry warned, ”If all the countries decide to behave like the United States, international trade will be seriously affected.”