Are the European unions involved in unfair trade practices

The United States Government has just placed a 50% tariff on the European union with effects from June 1.

But after a phone call with the EU commission president he decided to postpone implementation until June 9 to give room for more negotiation.

The reason for this tariff is based on Trump's beliefs that the European union over the years has been involved in unfair trade practices at the expense of the United States economy.

Therefore it's expected that the European union will increase their importation of American products like natural gas.

But in spite of the negotiation the European union is also preparing counter measures In case the negotiation did not settle the trade dispute. And these counter measures could target over 100 billion worth of American goods.

But are the European unions involved in unfair trade practices. Well these are the facts

1. The EU has tariffs on some agricultural and automobile goods from the united states

2. The United States has run multiple trade deficits with the European union which means over the years the united states has imported more from the European union

3. The European union supplies some industries with subsidies which trump views as unfair competition

But let's counter some of those facts

1. The United States also has active tariff on some agricultural products and the United States also grants subsidies to agricultural companies and steel manufacturers

The truth is Trump's concerns are not baseless but the issue is 50% Tariff is crazy and could spark trade wars between the United States and the European union the question is how many trade war can trump and his team manage.

Negotiations are better for now.