The United States (US) will impose 10 percent tariffs on aircraft and 25 percent on other industrial and agricultural products from the European Union - Photo: Privacy

JAKARTA (TheInsiderStories) – The United States (US) planned to impose 10 percent tariffs on aircraft and 25 percent of other industrial and agricultural products from the European Union (EU) also Brexit fears has hit the global financial market. A global stock market sell-off affected the major Asian stock exchanges today (10/02).

On Thursday, Nikkei index fell 2.04 percent, Hong Kong’ Hang Seng Index slipped 0.4 percent, Australian Stock Exchange fell 1.8 percent, and Straits Times index down 0.5 percent. While the Jakarta Composite Index has dropped significantly in five days trading and almost touched the resistance level at 6,000. 

So far, markets already were on edge about whether Trump’ tariff battle with China, which is weighing on trade worldwide, might tip the global economy into recession. Trump has long decried what he calls unfair trade practices by the EU.

Immediately, after a victory at the World Trade Organization (WTO), US slapped the EU zone with new levy. The duties are set to take effect on Oct. 18.

Recently, Trump administration increased tensions with the bloc, when he put tariffs on steel and aluminum imports from Europe last year. In responsed, the EU slapped duties on about $3 billion in American goods, including bourbon and motorcycles.

He has also threatened duties on cars and auto imports from Europe. In May, the administration delayed those tariffs for up to six months.

The country has sent about $319 billion in goods to the Eurozone in 2018, making them the largest American export market. The US imported about $488 billion in products from the bloc, and the nations combined are America’ second-largest supplier of goods.

Today, the US Trade Representatives released a list of products it plans to target, intensifying Trump administration’ global trade battles. The duties include 10 percent tariffs on aircraft from France, Germany, Spain or the United Kingdom (UK).

Then 25 percent duties on single-malt Irish and Scotch whiskeys, various garments and blankets from UK, 25 percent tariffs on coffee and certain tools and machinery from Germany, 25 percent duties on various cheeses, olive oil and frozen meat from Germany, Spain, and the UK, and 25 percent tariffs on certain pork products, butter and yogurt from multiple countries.

Earlier, the WTO gave the Trump administration the right to put tariffs on $7.5 billion in European goods. The US had lodged complaints, first in 2004, over what it called illegal subsidies for aircraft maker Airbus by several European governments.

The action escalates conflicts the Trump administration has waged around the globe as it tries to get major trade partners to change their practices. The US is locked in a trade war with China as it struggles to strike a new agreement with the world’s second-largest economy.

Investors have worried about sustained trade wars dragging on global growth and potentially pulling the US into a recession. The US stocks are off to their worst start to a quarter since 2008, as the Dow Jones Industrial Average 1.86 percent, has lost more than 800 points in the past two days.

Markets already were on edge about whether Trump’s tariff battle with China, which is weighing on trade worldwide, might tip the global economy into recession.

Trump has long decried what he calls unfair trade practices by the EU. His administration increased tensions with the bloc when he put tariffs on steel and aluminum imports from Europe last year. In response, the EU slapped duties on about $3 billion in American goods, including bourbon and motorcycles.

Trump has also threatened duties on cars and auto imports from Europe. In May, the administration delayed those tariffs for up to six months.

The US sent about $319 billion in goods to the EU countries combined in 2018, making them the largest American export market. The US imported about $488 billion in products from the EU, and the nations combined are America’s second-largest supplier of goods.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com