The global trade war continued to heat up after the European Union (EU) and India imposed tariffs on American goods in response to Trump's tariffs on steel and aluminium.
The tariffs come weeks after the Trump administration implemented a 25 per cent tariff on steel and 10 per cent tariff on aluminium, affecting trade partners like Canada, Mexico, and the EU.
Trump has threatened countries all over the world, saying he would impose additional tariffs if they chose to respond. In the case of the EU, he targeting European car manufacturers such as BMW and Bentley.
European Union tariffs
The EU announced it would launch tariffs on some $3.2 billion worth of American goods such as whiskey, tobacco, Harley-Davidson motorcycles and peanut butter, according to The Independent. A 50 per cent tax was also added on items such as footwear, clothing and washing machines.
Speaking to the Irish Parliament on Thursday night, European Commission President Jean-Claude Juncker said the EU would "do what we have to do to rebalance and safeguard" against the US tariffs. "It goes against all logic and history," he said, adding "Our response must be clear but measured."
The statement echoed the words EU Trade Commissioner Cecilia Malmström remarks on Wednesday that the 28-member bloc was "left with no other choice" than to impose retaliatory measures.
The EU has also filed a case with the World Trade Organisation (WTO), claiming Trump's tariffs were "pure protectionist" and "illegal". They also threatened a second round of tariffs on some $4.3 billion worth of US products if the dispute was not resolved.
India imposes tariffs
On Thursday, the Indian government announced that it would raise customs duty on 29 American products including iron and steel products. A Finance Ministry notification said that the duty hike would come into effect immediately, while the hike on artemia (shrimp) would be effective from August 4.
The country earlier sought an exemption from the US tariffs, as Trump has provided for a month to the EU, Argentina, Australia, Brazil, Canada, Mexico and South Korea, but the administration refused.
The new tariffs affect a wide variety of products-
| Good | Old tariffs | New tariffs |
| Flat-rolled iron products | 15% | 27.50% |
| Flat-rolled stainless steel products | 15% | 22.50% |
| Chickpea, Bengal gram, Masur dal | 30% | 70% |
| Shelled almonds | Rs. 100/kg | Rs. 120/kg |
| Unshelled almonds | Rs. 35/kg | Rs. 42/kg |
| Shelled walnuts | 30% | 120% |
| Apples | 50% | 75% |
| Phosphoric acid | 10% | 20% |
| Artemia | 20% | 30% |
| Mobile phone manufacturing equipment, earth moving equipment | 15% | 25% |
Commerce Minister Suresh Prabhu, who was in Washington last week, said that both nations had agreed to hold official talks soon to address the issue. Prabhu told reporters that India would soon send an official team to work out the details and start comprehensive negotiations, but a date for that has not yet been set.
[With inputs from IANS]
