US tariffs on metal: how should Europe react?
US President Donald Trump has announced that tariffs of 25 percent will apply for all imports of steel and aluminium as of 4 March. This means that for the first time Europe will also be affected by Trump's new tariff policy - both as an exporter and as a result of the expected shift in production from third countries to the European market. The media discuss the consequences and possible countermeasures.
China and Russia back in the game
Latvijas Avīze favours a gentle response – coupled with efforts to find alternative trading partners:
“The best response would be as moderate as possible – for example, the introduction of higher taxes for US companies' branches based in the European Union. And making sales of Tesla cars in the EU contingent on the payment of these taxes. Although this will damage the ideals of the Green Deal somewhat, the latter has to be adapted to be more realistic anyway – this is already being discussed at the official level. ... The second consequence of the tariff war will be that the EU will be forced to develop trade relations with other, more predictable partners – such as China and, unfortunately, also Russia.”
IT giants are the US's Achilles heel
If it comes to a trade war the EU can give US tech companies a hard time too, Der Standard points out:
“American companies have a lot to lose in Europe. The US's Achilles heel is its IT giants' business dealings: for Amazon, Alphabet (Google), Meta (Facebook), Microsoft and the like, the European market is their second biggest after the US, not least because other large economic areas such as China use their own platforms. Amazon alone generates more than 50 billion euros in sales per year through its subsidiary in Luxembourg, while Google generates more than 20 percent of its turnover in Europe.”
There will be a deal
Trump's tariff threats against the EU are no cause for concern for the time being, Magyar Nemzet writes:
“It would be pointless to bury the European Union over the issue of tariffs just yet. Because in many cases European exports to the US include strategically important products. ... At the same time it should not be forgotten that the EU imports large quantities of energy from the US and is prepared to purchase additional American weapons and military goods. Given that Donald Trump identifies himself as a businessman, his ultimate goal is probably to strike a favourable deal, using tariffs as a weapon.”
A trade war is still a war
Eldiario.es anticipates genuine confrontations:
“Call it what you will - cold war, electronic war, culture war or, as is the case now, trade war - it's still war. ... With Trump this is clear because he's using tariffs as a weapon to obtain quid pro quos that have nothing to do with trade. ... Until he runs out of ammunition or the rest of the world stops being afraid of him, in which case the trade war will stop being just a trade war and he'll call in the Marines. ... Are we on Europe's side? Probably, but with little enthusiasm: the EU is committed to free trade, neoliberal globalisation, borders for people but not for capital or goods, and the outsourcing of industry for cheap labour.”