EU gets ready for trade conflict with Trump
Date
10/26/2024 8:43:38 AM
(MENAFN) The European Union is on high alert for a potential trade war with Donald trump if he wins the upcoming US presidential election in November. Politico reported on Monday that senior diplomats and officials within the bloc are increasingly concerned about Trump's intentions to impose new punitive trade measures aimed at the EU, which he claims suffers from significant trade imbalances.
The tension between Washington and Brussels has been escalating since Trump's first term when he enacted a 25% tariff on European steel imports and a 10% tariff on aluminum, citing national security concerns linked to EU competition. In retaliation, the EU imposed its own tariffs on American goods, including motorcycles from Harley-Davidson and Levi Strauss jeans. Trump threatened to extend these tariffs to EU car exports, a move that ultimately did not materialize but left European leaders unsettled about his willingness to disrupt established supply chains.
According to Politico, the EU's experience from the last trade conflict with Trump has led to a more prepared stance this time around. One diplomat remarked, “Last time we didn’t believe how far Trump would actually go. This time we’ve had time to prepare. Europe has changed a lot, and we will be ready to act.”
Additionally, Trump has indicated that he might target EU digital services taxes, which he claims unfairly impact American technology companies. He stated in a recent interview, "Our allies have taken advantage of us. More so than our enemies," highlighting a perceived trade deficit of $300 billion with the EU.
As the election approaches, EU officials are strategizing to mitigate the potential fallout from a renewed trade war, bracing themselves for what could be a tumultuous economic relationship should Trump reclaim the presidency. The bloc's readiness to respond signifies a shift in their approach, with a focus on protecting their interests amid the uncertainties of international trade dynamics.
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