U.S. Tariffs on Europe and Mexico to Begin as Tensions Escalate

As the trade war between the United States and China rages on, the Trump administration has now turned its attention towards Europe and Mexico. According to reports, tariffs on European Union (EU) goods are set to begin in mid-June, while those on Mexican imports are slated for mid-September 2019. This move comes after President Donald J. Trump announced new tariffs on Chinese goods last week, raising the stakes in an already tense global trade environment. In a statement released by the White House, it was said that "The United States will impose a 5% tariff on all products imported from Mexico and a 25% tariff on steel and aluminum imports from Canada." The tariffs are set to take effect from September 1st unless Canada can negotiate with the U.S., resulting in higher costs for consumers and businesses that import goods from these countries. The EU, however, is taking a more diplomatic approach. According to European Commission President Jean-Claude Juncker, "We are not going to change our minds." He added that it was time for the U.S. to realize that its "unilateral action" would only serve as a "lose-lose outcome" for everyone involved. The impact of these tariffs is expected to be significant, not just in terms of economics but also politics. The European Union represents one of America's most important trading partners, accounting for nearly 20% of U.S. exports and investment. Mexico is another important trading partner, with trade valued at over $600 billion annually. The impact on the economy will depend largely on how each country responds to these tariffs. If Europe or Mexico retaliate by imposing their own tariffs on U.S. products, then there could be a serious negative effect on both countries' economies. However, if they choose not to retaliate, then the impact may not be as severe for either country but will still have an effect on global trade and the economy as a whole. In terms of politics, these tariffs are likely to further inflame tensions between Washington and other capitals around the world. This could result in new trade agreements being negotiated with different partners or even lead to other countries taking similar actions against America's imports. However, it is unlikely that any nation would want to go down this path since such measures are likely to have a significant impact on their own economies as well. Despite the fact that these tariffs will hurt both Europe and Mexico financially, it is unclear whether they will change President Trump's mind regarding his desire for more favourable trade agreements with other countries. However, given how quickly this situation could escalate into a full-blown trade war, it remains to be seen what course of action the U.S., Europe and Mexico take in response.