The European Union responds to Trump’s tariffs by also applying their own tariffs on American products like bourbon, motorcycles, and orange juice. The Trump administration recently tacked tariffs on steel and aluminum imports. In retaliation, Mexico and China have already imposed tariffs of their own. Other countries such as Turkey, Japan, and Canada are planning to impose tariffs on American goods soon. The Europe’s tariffs will cost Americans $3.2 billion of goods. The president’s next aim is toward German car manufacturers justifying this move as a nation security concern. He threatens a 20 percent tariff on cars if the EU does not corporate and allow American farm products in their countries.

The United States’ economy is in one of its strongest years in a decade. However, the European nations are not sharing the same growth. The EU’s economy is growing at a much slower rate with the amount of political turmoil in Italy and Germany along with the Britain’s exit of the EU. This trade war may end up costing American jobs. The Mack Truck factory located in Pennsylvania, but it is owned by the Volvo Group, which is a Sweden-based company. The plant uses specially-treated steel from Europe that America does not have. Now with the imposed tariffs, they would have to pay 25 percent more for the steel. Therefore, they will lose their competition with other companies stationed in other countries such as Mexico where they can receive the high-quality steel for cheaper.

Trump wants to use economic force to exercise businesses, but his timing of tariffs has left little time to negotiate. Formal trade talks between the two countries have been closed, but here are a few informal channels that remain open. The EU applied sanctions earlier than what was expected to show that they were not taking the attacks lightly and they were serious. The EU is now meeting with other countries such as Japan, Canada, and Australia to negotiate a free-trade pact.