US-China tariff war: how should the EU respond?
Now that the US has suspended its special tariffs for most countries, the focus of the global tariff dispute has shifted to the clash between Washington and Beijing. Europe faces the question of how to position itself in this clash of titans. Commentators are at odds.
America First or China First
LRT comments:
“The economic, military and philosophical pillars of the post-war world order have collapsed. But through the smoke rising from the ruins, a geopolitical imperative remains visible: compete or retreat. This applies on both sides of the Atlantic, although the interpretations are very varied. ... Europeans might also ask themselves how more unified and decisive leadership could turn their enormous prosperity and rule-making power into genuine geopolitical influence. But this does not change the real dilemma we face: whether to tacitly accept China's global leadership which entails an irreversible decline in trade, political influence and technology – or cooperate with the US, as difficult as this may be? Those who criticise 'America First' will like 'China First' even less.”
Together against Beijing
The EU should offer Trump cooperation in the fight against China, argues Der Spiegel:
“The combined economic power of the US, EU, Australia, Canada, India, Japan, Korea, Mexico and New Zealand, measured by gross domestic product, amounts to 60 trillion dollars. China's stands at 18 trillion. What is needed is a kind of 'economic Article 5' similar to the one the Nato defence alliance has in its statutes. A clause that commits us to joint defence against enemies. Trump has so far pursued the opposite. ... Nevertheless, the Europeans should leave no stone unturned to convince him of this course. There is no good alternative.”
Time is on our side
At Jyllands-Posten, business editor Tor Illum Johannessen rethinks his position:
“In an earlier editorial I argued in favour of hitting back hard against Trump in the trade war. But honestly, right now he's banging his own head harder against the Great Wall of China than we in Europe could ever hit him. In the coming months, economic developments are likely to weaken the US's negotiating position. Clearly, the time has come for long and tedious negotiations. We in the EU are good at that. Now we know Trump's weak points should he opt for escalation again. It's not just Japan and China that have large US government bond reserves. Europe's are even larger.”
We don't know who's with us any more
Former editor-in-chief Màrius Carol comments in La Vanguardia on the deep mistrust that prevails:
“The European authorities are reacting with extreme caution to the land, sea and air attacks launched by the US president in his discourse (and decisions). ... We no longer know who is on our side. ... Brussels has so little trust in the Americans that the Commission is equipping all officials travelling to the US with disposable mobile phones and computers with minimal functions for fear of espionage, just as is common practice with travel to Ukraine and China. This also applies to the commissioners themselves. ... And that's where we stand: not knowing who's on our side or what this whole thing is going to cost us.”
A challenge and an opportunity
Kathimerini is optimistic:
“Europe (with Britain) comprises some 500 million well-educated, well-paid citizens. ... National and EU leaders must not lose focus of the need to secure the survival of the European Union, of democracy, and, consequently, of their nations. If the Europeans can meet this challenge, America's self-destructive course will not necessarily lead to Europe's withering. A stable and steadfast Union might even find itself in an unexpectedly stronger position, attracting academics and investment capital, signing profitable trade deals, developing its defence, expanding its alliances and influence. For this, it must not lose heart today.”