U.S. tariff on exports to cast shadow on EU industries

Cartoon by Tan Xiguang

U.S. President Donald Trump recently announced the decision to impose a 30 percent tariff on imports from the European Union (EU) starting Aug. 1, claiming that the EU's tariff and non-tariff trade barriers have created a massive U.S. trade deficit with Europe.

Since the announcement, industries across Europe have been shrouded in uncertainty over the impact of the tariff. This is especially true for the agricultural processing sector where producers fear that a steep tariff could leave their products unsold.

Washington's reckless tariff hikes not only undermine the interests of businesses and consumers but also pose a serious threat to the global economy.

The U.S. tariff hikes could prompt other countries to respond by raising their own trade barriers to address widening imbalances, further deepening geoeconomic fragmentation. Such a trend would inflict lasting damage on the global economy, according to a report released by the International Monetary Fund (IMF) on July 22.