Washington [US], October 30: Former US President Donald Trump warned that if he is re-elected, the European Union (EU) will pay a heavy price for not buying enough American goods.
Speaking at a campaign rally in Pennsylvania on October 29, US presidential candidate Donald Trump promised to enact reciprocal trade legislation with the EU and said that Europe is not buying US goods at a commensurate level, according to Reuters.
"They don't buy our cars. They don't buy our farm products. They sell millions of cars in the United States. No, no. They're going to pay a big price," Mr. Trump warned.
The EU did not immediately respond to the statement. According to Euronews, the US-EU trade relationship is the largest in the world , with about $1,000 billion worth of goods and services annually. The EU is benefiting more than the US, with reports showing that the EU enjoyed a $156 billion surplus in goods last year, while suffering a $104 billion deficit in services.
Goldman Sachs estimates that a 10% US tariff would cut 1% of the eurozone's GDP. Other economists predict that Germany would be hit hardest because of its reliance on exports to the US.
Trump's Tools
During his campaign, Trump vowed to impose a 10% tariff on all goods imported into the US, including 60% on China. The candidate is using tariffs, which he describes as the most beautiful in the world, to promote the development of American businesses, create jobs and reduce the federal budget deficit.
But critics say American consumers would bear the economic burden of such tariffs. Economists warn that the proposal would impact global supply chains, potentially leading to increased costs and retaliation.
In July, Mr. Trump also declared that Taiwan should pay the United States to protect the island, comparing the US to an "insurance company" and accusing Taiwan of "giving us nothing." In addition, he also accused Taiwan of "taking away almost 100%" of the US semiconductor industry.
In fact, the United States has sold billions of dollars in arms to Taiwan and is bound by law to provide the island with the means to defend itself.
Source: Thanh Nien Newspaper