On June 8-9 in Canada, the G-7 summit was held at the level of the Heads of State.
The focus was on Trump and his tough demands from the US government to introduce new increased tariffs on steel and aluminum for all US trading partners including China, Mexico, and other US allies such as Canada and the European countries.
All members of the G-7, except for the United States, ruthlessly opposed the demands of Trump.
The only compromise proposal came from Angela Merkel (Germany): to convene a “forum” for discussion and resolution of trade disputes. In fact, Merkel proposed to forward the matter to the conciliation commission.
The trade war in “US-Allies” will begin in July this year. If there are no agreements, the US allies are ready to introduce retaliatory measures in the form of tariffs on a number of goods from the United States.
Trump did not completely confuse the tough objections of the allies, as the US was in fact isolated.
In his speech before his departure, Trump made a sensational suggestion: Trump proposed (in response to criticism of his new duties) to cancel ALL tariffs, trade barriers and SUBSIDIES for all goods within the G-7.
Of course, this is a strong move but still it’s a proposal. At least, the EU can not completely abandon subsidies – for example, agriculture.
Thus, there are two ways: negotiation and compromise. The second option is a trade war already expected in July.
* The presented market analysis is informative and does not constitute a guide to the transaction.
The material has been provided by InstaForex Company – www.instaforex.com
Trump and the Big Seven: Results.
On June 8-9 in Canada, the G-7 summit was held at the level of the Heads of State.
The focus was on Trump and his tough demands from the US government to introduce new increased tariffs on steel and aluminum for all US trading partners including China, Mexico, and other US allies such as Canada and the European countries.
All members of the G-7, except for the United States, ruthlessly opposed the demands of Trump.
The only compromise proposal came from Angela Merkel (Germany): to convene a “forum” for discussion and resolution of trade disputes. In fact, Merkel proposed to forward the matter to the conciliation commission.
The trade war in “US-Allies” will begin in July this year. If there are no agreements, the US allies are ready to introduce retaliatory measures in the form of tariffs on a number of goods from the United States.
Trump did not completely confuse the tough objections of the allies, as the US was in fact isolated.
In his speech before his departure, Trump made a sensational suggestion: Trump proposed (in response to criticism of his new duties) to cancel ALL tariffs, trade barriers and SUBSIDIES for all goods within the G-7.
Of course, this is a strong move but still it’s a proposal. At least, the EU can not completely abandon subsidies – for example, agriculture.
Thus, there are two ways: negotiation and compromise. The second option is a trade war already expected in July.
* The presented market analysis is informative and does not constitute a guide to the transaction.
The material has been provided by InstaForex Company – www.instaforex.com
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