The trade war between the US and China, two of the biggest democracies in the world, has been on the limelight for quite some time now. It looks like a deal is likely to be struck between the two countries which have brought forward another situation, a brewing trade war between Europe and the US. President Donald Trump had already revealed previously that he would put a tariff of 25 % on the automobiles to be imported from the European Union but it has not been imposed yet. He is more likely to make a decision by May 18 though.
This move may not really be the real intention of the White House, some experts believe. They feel that it is a move that can be adopted by the American Government in order to strike a better deal in the agricultural sector. According to David Hauner from the Bank of America, the slapping of tariffs on European products might not be a very sound move at this moment, especially because of the fact that it has just come out of the Chinese fiasco. The road ahead is going to be very tricky and tough, he believes. Though, some kind of concessions is desirable but it is going to be very tricky to maneuver through the whole situation.
Agriculture is definitely one of the biggest sectors in Europe in which America will look to occupy a major position in the particular sector. However, farmers have been majorly affected in the trade war between the US and China already and a problematic situation with the UK might blow the situation of the roofs. This particular situation may be a major cause of concern for Trump as he considers re-election in 2020. If implemented this move by the Trump can hurt German automobile industry badly.