Trump's 15% tariff and the future of EU trade
Thursday, August 7th, was a day of mourning for European industries, businesses, and manufacturers.
It was the day that marked the implementation of the 15% single customs tariff imposed by Donald Trump on most European Union products imported into the United States.
The agreement, announced on July 27th following a meeting between the US President and European Commission President Ursula von der Leyen, was seen by some as a surrender. For others, however, it was perceived as a lesser evil compared to the initial threats from the fickle occupant of the White House.
The repercussions of the EU-US trade deal, finalized last month and which has just come into effect, threaten to have a major impact after this summer—and they raise an uncomfortable question: Why was so much given away to Donald Trump? Where does Europe go from here?
Within the EU, the agreement was heavily criticized. One observer quipped that it marks the beginning of a “season of humiliation” for the EU that could last for decades. Another delved into ancient history, comparing the EU executive to a Roman general who, after gaining unimaginable power, used his vast armies to “gather seashells on the beach.”
Indeed, Europe seems to have turned a strong negotiating position into an incoherent mix of fragmented and conflicting national stances over the weeks. Instead of engaging in a classic negotiation, Trump, who, as is often said, “hates the European Union,” set out to “fragment” what he sees as a “divided, weak, slow, and cumbersome organization.”
Brussels made a mistake by not utilizing the powerful trade tools at its disposal. The EU is not a superpower except when it comes to trade... yet it underestimated its own influence. Donald Trump never believed that officials in Brussels would use the anti-coercion instrument.
Then, member states demonstrated a lack of solidarity at a critical moment. In doing so, they weakened the EU Commission.
In a jointly written article, former Lithuanian Foreign Minister Gabrielius Landsbergis and former world chess champion Garry Kasparov wrote that: “The solution requires a complete re-evaluation of what European leadership will look like in the 21st century.”
Easier said than done. Additionally, not everyone shares the diagnosis that the trade deal was a disaster, or that deeper EU integration is the obvious solution.
Finally, on Friday, August 8th, the ultimatum given by Donald Trump to Vladimir Putin to accept a ceasefire in Ukraine before a possible meeting next week also expires. However, it's still not clear what sanctions Trump might impose on Russia or if they would be harsher than the 15% imposed on Europe.
Translation by Iurie Tataru
