Following President Trump’s ‘Liberation Day’ announcement of a 20% tariff on European Union imports, the EU must respond. It seems unlikely that the EU will be able to negotiate a lower tariff. Trump needs hundreds of billions of dollars in tariff revenue to cover extended and increased income tax cuts – a signature feature of the Republican agenda. He believes high tariffs will revitalise investment in US manufacturing. It is unclear whether this will be the case, but tariffs will come at a high cost to US consumers.
School Authors: Shanna Pearson-Merkowitz
Other Authors: Skip Mark