What consequences a new EU-Trump tariff war could have

Donald Trump has reignited global trade tensions – by threatening to impose a 50 per cent tariff on imports from the European Union.

The US president accuses EU member states of using unfair trade practices. In his view, they include value added taxes and unjustified lawsuits against American companies. Trump adds that the EU is running a huge trade surplus with America – and that negotiations to reduce this are going nowhere.

US and European stocks have tumbled in response to his remarks. In a statement from the Oval Office, Trump renewed his pressure on European companies to move production to the US.
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