Days after the United State imposed tariffs on steel and aluminium imports, the European Union has imposed retaliatory tariffs on some US goods imported by the member countries of the EU.
Bourbon whiskey, motorcycles and orange juice are the prime US products on which the European Union has imposed severe tariffs.
The time in which the EU has selected to impose tariffs on the US goods are very crucial. At this time, the US is battling a fearsome trade war with China and India –the time prime trade partners of the US with whom the US does trade the most after the European Union.
India has already decided to impose trade tariffs on some agricultural products such as walnuts and almonds, and steel and iron products imported from the United States.
Meanwhile, China has threatened the US indirectly that it would face severe consequence if the present trade balance is disturbed or readjusted in favour of the US market.
At present, the US suffers huge trade deficits with the EU and China. It believes the huge trade deficits it have with the EU and China adversely affect its economy. It claims that some foreign countries are largely benefited with the help of the US trade deficits.
Vignesh. S. G
Photo Courtesy: Google/ images are subject to copyright