How should Europe respond to Trump's tariffs?
US President Donald Trump has made good on his threats and imposed tariffs of 25 percent on imports from neighbouring Canada and Mexico. In addition, tariffs on Chinese goods were increased by 10 percent. Similar measures will follow for other countries in April, Trump reiterated in his speech to Congress on Tuesday. Europe's press takes stock.
Deal possible
Europe should not panic, Handelsblatt recommends:
“Unlike in military matters, Europe and the US are on an equal footing when it comes to trade. In fact the EU single market is even larger than the American one. China is currently demonstrating how to best handle the troublemaker in the White House. At the same time, however, Europe should seek dialogue with Trump and take him at his word. After all, he has said that he wants the US to pay no more tariffs on its exports to Europe than the Europeans pay for theirs to America. The average levies on imports in both directions are well below the ten percent mark. The EU even speaks of just one percent. In other words, the two sides are not so far apart that they can't reach a deal.”
US president won't be swayed
The attempts to change Trump's mind seem unrealistic to De Standaard:
“How many friendly nations can Donald Trump chase away? Mexico, Canada, the EU, the UK, Ukraine, South Africa, Japan, Australia - they have all incurred his wrath and they must all kneel before him. ... Giorgia Meloni is the next head of government [after Macron, Starmer and Zelensky] who will fly to the US to convince Trump that Europe is an ally and trading partner. But a president who is prepared to alienate the strongest democracies, the most prosperous part of the world and the US's biggest markets cannot be persuaded to be reasonable.”
EU gaining clout
Washington alienating so many countries creates a new role for Brussels, Unian comments:
“Since Trump didn't impose these tariffs immediately but gave the countries concerned a month to reflect, most of them have already begun to adapt to the new reality. For example, the EU has intensified negotiations with India on a free trade area and is expanding its own industrial production (primarily in the defence sector). Europeans see India - and not the United States - as an alternative to China and a promising industrial base. ... Turkey will also be affected, and has intensified its negotiations with the EU in this context. In fact, Europe is gradually uniting all the malcontents around it.”
Enhance cooperation with Canada
The EU member states that have not yet ratified the EU's trade agreement with Canada (CETA) should do so as quickly as possible, the Irish Independent stresses:
“To date, 18 EU members have signed up fully. Ireland, despite being one of the closest EU nations to Canada geographically, is among the laggards. ... Canada is now a friend in need. The crushing 25 percent tariff being piled on exports to its biggest trading partner will inevitably trigger a recession in the country. ... Countries like Canada and Ireland, moderate, rules-based, co-operative and democratic, need to hang together in this new world, or we'll be hung out to dry separately.”
An uncertain strategy for the wrong goal
This policy won't resolve the US economy's real problems, complains columnist Maurice Obstfeld in the Financial Times:
“Tariff talk distracts us from the appropriate economic policies to help America. Better targeted policies could include a more redistributive tax system, limits to corporate market power, further healthcare reform, and workforce development. The Trump administration is offering none of these. ... Those now in power in Washington see a powerful hammer in tariffs and the trade deficit is their biggest nail. But even if the hammer can drive the nail home - which is doubtful - America's real problems will remain.”