US President donald trump has once again created a stir in the business world. He has announced to impose 50% tariff on all imports from European Union and 25% tariff on foreign smartphones from june 1. Trump's decision has created turmoil in international markets and global diplomacy. On the decision, trump said in a social media post that our discussions are not reaching anywhere and they are treating our products unfairly.
Apple, which is already transferring production to india to avoid China's tariff, has now come under Trump's target. trump has clearly warned the company's CEO Tim Cook that he should either produce apple in America or pay 25 percent tax. In this way, heavy tariff on iPhone directly means that apple smartphones will become expensive and its demand in the American market will decrease. After this decision, Apple's shares have fallen by 3%, which indicates that the market situation has become serious.
Reaction of the european Union
After US President donald trump imposed a 50 percent tariff, EU trade chief Maros Sefcovic urged mutual respect and peace. Apart from this, Dutch PM Dick Schoof said that this is Trump's old strategy, he bargains by threatening. If a 50 percent tariff is imposed on the EU, then due to this, goods will become expensive in many ways. Due to this, the prices of cars, pharmaceuticals, aircraft and aircraft parts will increase. American customers may also have to pay a heavy price due to 50% tariff in these areas.
The effect of Trump's decision is being seen in the market. There has been a decline in the American and european stock markets. There has been a rise in the prices of gold. On this, Bloomberg's financial analyst says that earlier the situation of the global market had started improving. However, now once again instability has returned.
click and follow Indiaherald WhatsApp channel