EU and IMF Called on US President to Stop Global Trade War

Forex News

The EU and the IMF are urging the US president not to inflame a trade war. Gary Cohn, economic adviser of US President, former president of Goldman Sachs and a free-trade advocate, did not support Donald Trump's plan to impose import duties on steel and aluminum in the United States and plans to resign shortly. The reason for Cohn's resignation was supposed to be disagreement with Trump's intention to introduce import duties on steel and aluminum, which are believed to be fraught with a new trade war between America and Europe.

Trump plans to impose a duty of 25% on steel and 10% on aluminum to withstand cheap imports, especially from China, which, according to him, undermines the industry and jobs in the US. The European Union has prepared retaliatory restrictions in case of accepting protectionist customs tariffs for steel and aluminum by the US, and plans to impose 25% taxes on a number of imported goods from the United States.

International Monetary Fund chief Christine Lagarde said, that the economic impact of US import tariffs would be serious if other countries respond with their own barriers. Britain, which aims to develop global trade relations after leaving the EU, said it was very disappointed by Trump's plan. German Economy Minister Brigitte Zypries hopes Trump changes his mind, as it is very important that there are advocates for this in the White House.