US President Trump escalated the global trade war again on Wednesday (March 12), threatening to impose further tariffs on EU goods in response to retaliatory measures by the EU and Canada against the tariffs already imposed by the US. Trump's tariff policy not only undermines the confidence of investors, consumers, and businesses, but also raises concerns about an economic recession. Although the countermeasures taken by the EU and Canada are relatively limited, this series of actions has intensified global trade tensions and may have far-reaching impacts on the global economy.

Trump's tariff threat and global response

Trump threatened on Wednesday to impose additional penalties if the European Union implements its plan to impose retaliatory tariffs on some American goods next month. He said, 'No matter what they charge us, we will take it back.' This statement further intensified the tension of the global trade war. Canada, as the largest supplier of steel and aluminum to the United States, announced retaliatory tariffs on $20 billion worth of American goods in response to Trump's tariff measures. Canadian Finance Minister LeBron emphasized that Canada will not stand idly by with unfair trade practices.

EU's countermeasures and their impact

The EU's countermeasures will take effect next month, targeting $28 billion worth of American goods such as dental floss, diamonds, bathrobes, and bourbon whiskey. Although these goods only account for a small portion of EU US trade, the alcohol industry warns that this will have a "devastating" impact on its industry. Von der Leyen, President of the EU Executive Committee, said that he had instructed the Trade Executive Committee Sergekovic to resume talks with US officials, stressing that tariffs were not in the common interests of both sides.

Potential consequences of a global trade war

Trump's tariff policy not only undermines the confidence of investors and businesses, but also raises concerns about an economic recession. According to the Reuters/Ipsos survey, 57% of Americans think Trump is too capricious in his efforts to revitalize the U.S. economy, and 70% expect that these tariffs will make daily purchases more expensive. In addition, close allies of the United States, the United Kingdom and Australia, have criticized Trump's tariff policies but ruled out the possibility of immediate retaliatory tariffs. Brazil, as the second largest steel supplier to the United States, has also stated that it will not take immediate retaliatory action.

summarize

Trump's tariff threat has once again escalated the global trade war, with countermeasures from the European Union and Canada exacerbating trade tensions. Although the countermeasures taken by the EU and Canada are relatively limited, this series of actions could have far-reaching impacts on the global economy, particularly on investor confidence and consumer spending. In the future, the direction of the global trade war and its impact on the economy will continue to be the focus of market attention. If the parties cannot resolve their differences through negotiations, the global economy may face greater uncertainty.

Gold, as a traditional safe haven asset, is often favored by investors when uncertainty increases. As the trade war escalates, investors may shift their funds from high-risk assets such as stocks to gold, thereby driving up the price of gold.