The publication notes that the Trump team is planning a potential list of actions against the EU, which could include a broad minimum of 10% tariffs, as well as possible countermeasures against European digital services taxes that implicitly target US technology companies.
Trump last shook the foundations of transatlantic relations when he attacked the World Trade Organization, questioned European security guarantees and called Brussels a “hellhole.”
The two sides are still at odds over the tariffs Trump imposed on EU steel and aluminum during his first term, citing US national security concerns. The European Union responded with its own countermeasures and entered into a temporary truce with President Joe Biden in 2021.
What steps are EU officials taking?
The EU argues the current situation is still unfair, saying the bloc’s exporters pay more than $350 million a year in tariffs. EU member states, however, have been reluctant to respond by reintroducing tariffs on American goods over concerns that it could boost Trump’s election chances.
Potential measures against Europe would be part of a broader initiative to overhaul US trade in goods. The country has long had a large deficit with the EU, and the 2023 figures will mark the third year in a row of an imbalance exceeding $200 billion.
Trump advisers argue that the model illustrates unfair trade practices.
Senior officials, notably German Foreign Minister Annalena Bärbock, have already begun reaching out to Republicans. In September, she traveled to Texas and Washington to meet with a number of Trump supporters.
Europe needs to prepare to work with Trump
Baerbock has previously said that Europe should be ready to work with Trump if he wins the election. According to her, it would be naive not to prepare for such an outcome.
While Biden’s rhetoric may be more conciliatory than Trump’s, and his alliance with the EU on Ukraine has helped repair transatlantic relations, EU officials remain aware that his trade policy still has much in common with his predecessor’s “America First” approach. .
Europeans in particular have been struck by Biden’s more than $390 billion green technology subsidy program, which gives companies an incentive to shift investment from Europe to the United States.
Who is afraid of Trump coming to power?
German Chancellor Olaf Scholz has openly stated that he wants Biden to be re-elected.
“Trump, on the contrary, advocates a ‘big split’ in the United States, which will also be bad for Germany. The current president is better, so I want him to be re-elected,” Scholz said.
Deutsche Boerse AG CEO Theodor Weimer said of Trump’s possible return, Europe can only hope the US legal system has strong checks and balances.
US elections
The next US presidential election is scheduled for November 5, 2024. There are two main US political parties participating in the elections: Democratic and Republican. The main candidate from the Democrats is the current American leader Joe Biden, from the Republicans – Donald Trump.
By the way, Trump won the primaries in Iowa and New Hampshire. Read about what this will mean for the current election race in the RBC-Ukraine article.
Let us remember that according to the poll results, Trump took the lead on the eve of the US primaries.
2024-02-07 18:38:40
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