The EU’s trade war with Trump has finally begun as tit-for-tat tariffs are now in play.
Though stock markets have been down since US president Donald Trump implemented his long-promised tariffs on various countries, he continues to roll them out with the European Union the latest target.
Now slapped with 25% tariffs on steel and aluminium exports to the US, the European Commission president Ursula von der Leyen this week announced a retaliatory €26bn package on a raft of US goods.
What US imports are taxed?
Key US food, drink and agri imports will now face taxes when entering the EU. These include bourbon and peanut butter, nuts, eggs, dairy, sugar, vegetables and a host of other products.
UK prime minister, Sir Kier Starmer has so far refused to be drawn into the trade war, saying his government will “keep all options on the table”.
Though Trump’s tariffs so far have not had the desired effect, with stock markets in the States tumbling and the cost-of-living for everyday US citizens not easing.
US cost-of-living going up
So bad is the state of play that egg prices in the US have reached record levels of near $5 a dozen, a 54% hike on last year’s price and a 157% uptick over three years.
This is compounded by higher food prices overall, with costs of everyday essentials expected to rise further, at up to 3.4% this year, according to the US Department for Agriculture.
Academics have said Trump will find it difficult to bring down the price of food and drink in a short space of time, predicting things will get much worse.
There has also been talk of recession in the States, a terrible situation globally, with Trump not ruling it out.
