The United States has imposed 25% customs rights to European iron and aluminum imports. The Commission responded with similar measures, aimed at several American products, Bourbon Usque and Harley Davidson bicycles. What does this mean for Europeans?
The spectrum of a transatlantic commercial war has returned to the United States and the EU. On March 12, the United States applied a 25% rate on steel and aluminum imports. The EU responded with Countereds On.
In your statement, the President of the European CommissionUrsula von der Leyen, emphasized that tariffs “are bad for companies and worse for consumers.” Euronews tried to realize why.
“If we think about the gain of tariffs, economic orthodoxy will say that it will never be profitable. Any tariff policy that affects the means of production, with respect to reserves, natural reserves such as steel and aluminum, will eventually have an impact on the production machine of the European Union. In the EU rates it will finally create an inflationary impact in Eus in Eusolens, good eusolens Of the eutos.
The most recent studies of the Kiel Institute have shown that customs rights of the United States to the European Union will first damage the United States with respect to inflation, employment and growth level, not in the European Union.
But what about European citizens?
“The impact on European citizens is something that I cannot predict at this time, because there are different channels to know how rates can affect citizens. Perhaps citizens, when they see that imported products are more expensive, change their consumption for national products. However, we also have two very serious problems they think, that will be monetary reactions and the financial market,” said Psalios Psarras.
If some products become much more expensive, EU citizens will have to replace them. Can we find alternatives?
“I think that, currently, the EU can replace, if not all, most American products. For example, if we even talk about electric vehicles, we have seen that Tesla’s sales have fallen, but also one of the most fierce tools that has been used, chatgpt, can be replaced by the French alternative Mistal market.
According to the analyst, the EU continues to depend on the financial system of the United States. And a possible recession in the United States can influence the European economy, since the EU will not be immune to the consequences.
“We are not still sure of what will happen to us and, consequently, of international growth. Because now more and more analysts are discussing the perspectives of a recession in the United States. I do not exclude this scenario. Even Donald Trump, during his speech on the state of the Union, before Congress, said that things can get worse before improving. And if we have it in mind, this can be translated into a world recession.” “
The analyst explained that, although the EU reacted to the global crises previously more effectively, it was not yet prepared to deal with a large -scale global recession and that this has to change.
