With its own style, Donald Trump announced on Wednesday that it would increase customs duties on European products to 25 %. What would this measure be involved?

Donald Trump brandishes the threat of customs duties to the European Union

It was one of the fears of the European Union during the election of Donald Trump: customs fees. While it was one of his favorite weapons during his previous mandate, notably vis-à-vis China, the new President of the United States puts the cover, and announces that this time, Europe will pay the price for a trade war, and in particular the automotive sector, as he announced on Wednesday during the first meeting of his cabinet at the White House:

We have made a decision. We will announce it very soon, and it will be 25 %, in general, and this will concern cars and all kinds of things. […] They do not accept our cars. They also do not accept our foreign products. There are all kinds of reasons why they don't. And we accept everything that comes from them. We have a deficit of around $ 300 billion with the European Union.

In reality, this figure of $ 300 billion would be somewhat exaggerated, since Eurostat data suggest that the said deficit in this trade balance was $ 157 billion in 2023.

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Further in his speech, Donald Trump makes Donald Trump, By advancing that the European Union had been created “to screen” the United Statesa verb which can be translated in a diplomaticly correct manner by “scam” or “blur”, or more vulgarly by “fog” or “fuck”.

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Towards a trade war?

To this, a spokesperson for the European Commission responded to Reuters that if the possibility of these taxes were to materialize, the EU “would react firmly and immediately».

When someone Founded by Donald Trump would happen if the EU rippiedthe interested party was confident:

They can do it, they can try. But the figures can never match ours because we can stop everything. We are the corne of abundance. We are those that everyone wants. They can fight back, but it can never be a successful response, because we will stop clear. We will not buy anything. And if it happens, we win.

Beyond words, the subject of customs duties is much more subtle than this binary vision presented here. Indeed, importing companies can in particular choose to continue to buy foreign products, at the risk of reducing their margin or to repercussions on the end consumer. Otherwise, these same companies can be provided elsewhere, for the benefit of other foreign powers, or of the local economy, if the products in question can be found on site.

In the case of finished products, similar reasoning can be transposed to private buyers.

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In addition, an increase in European products prices would not necessarily impact European companies, at least under certain conditions. Take the case of liquid air which employs 20,000 people in the United Statesits local production would not be impacted. Conversely, LVMH could encounter difficulties on some of its products, but not on the whole of its range.

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Source: Bloomberg

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Since 2021, I have devoted my free time to seriously train myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to carry out interviews with influential personalities from the blockchain industry. I also conduct in -depth analyzes on web3 themes to offer exclusive content to cryptoast readers.

Vincent Mayor

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