US President Donald Trump has imposed a 5 percent tariff on Mexico and the European Union (EU) imports. It will be effective from August 7. According to the White House sources, Reuters said the decision was taken after a few weeks of discussion with the allies failed to make a trade agreement.
President Trump announced the new tariff on Saturday (July 12) through a separate letter to the Truth Sosle. Earlier this week, Trump announced new tariffs for several countries like Japan, South Korea, Canada and Brazil, as well as imposing 5 percent tariff on copper.
The United States expected a trade agreement with 20 European Union countries. The EU initially hoped to make a trade agreement, which included the 'Zero for Zero' duty on industrial products. But after a few months of discussion, they realize that perhaps an interim agreement must be satisfied. However, the EU expects further discussion in the future.
The 20 -country coalition is under contradiction with EU Trump's tariff. Germany, one of the most powerful countries of the coalition, has already called for an agreement with the United States to protect their industry. On the other hand, other EU countries, like France, say that in US terms, trade agreements should not be surrendered unilaterally.
Since returning to the White House, Trump's customs order has created a few billion dollars of new revenue opportunities per month for the US government. According to Friday's Data from the US Treasury Department, the US Customs Revenue has exceeded $ 1 billion in the federal financial year till June.
