The Court of International Trade ruled that the President had exceeded his constitutional powers by imposing “reciprocal” tariffs without Congressional approval. A decision that upsets the Republican administration’s trade strategy.
The American president is getting tough with Brussels, deeming trade negotiations to be at an impasse. Europe retaliates by preparing taxes on 95 billion euros of American imports.
Technology items (computers, smartphones, microprocessors, etc.) have been removed from the list of Chinese products taxed at 145% by the United States. A setback that will be followed by others. And heralds the decline of the dollar as the world’s reserve currency.
The new tariffs imposed by Trump, which came into force on Saturday, are causing a global shockwave on the world’s financial markets. Asian stock markets recorded spectacular falls of between 3% and 12% on Monday. The CAC lost 6.89% at the opening.
Washington is threatening to tax European, and therefore French, wines and spirits by up to 200% in retaliation for Brussels’ measures.
