There Will Be No Trade War with America
The EU has shown restraint at a time when Europe needs the protection of the U.S. more than ever since the end of the Cold War.
Fifteen percent: That is what U.S. tariffs will be on nearly all imports from the EU. This is three times higher than the current tariffs. On Sunday evening, during a meeting with Donald Trump in Scotland, the president of the European Commission accepted the tariff rates without introducing any new duties on U.S. imports to the EU in return. The U.S. president made small concessions, which include agreeing to reduce tariffs on cars from 27.5% to 15%.
The EU had the tools to retaliate against the U.S. but chose not to. Trump ultimately offered the same terms he had agreed to with Japan just days earlier. But they are worse than those in the U.S. and the U.K. agreement.
The exchange of goods and services between the U.S. and Europe accounts for one-third of global trade — there is no more important economic relationship in the world. We cannot rule out the fact that the increase in tariffs by the U.S. will contribute to a further slowdown in global economic growth and accelerate inflation in the U.S. itself. This is something that Brussels has long warned about.
On Sunday evening, however, Ursula von der Leyen referred to "rebalancing" trade between the U.S. and the EU. She began to echo Trump's narrative, in which he claims that the huge deficit in the exchange of goods on the part of America is not the result of the weak competitiveness of American goods but allegedly unfair competition from Europe.
The EU was not defenseless on the issue. It had a plan ready to impose its own tariffs. It could also impose severe restrictions on American services, in which Washington generates a large surplus in exchange with Europe.
Without America, Europe Cannot Ensure Its Own Security
Von der Leyen, however, certainly after consulting with the leaders of the key European countries, approached the issue more broadly. This fall, the Pentagon is expected to review the U.S. military presence in Europe. It is also uncertain whether U.S. support for Ukraine will continue. And last Friday, during a meeting with Polish Prime Minister Donald Tusk, the commander in chief of U.S. forces in Europe, General Alexus Grynkewich, warned that Russia would be ready to attack one of the European NATO countries as early as 2027.
In this situation, the EU's commercial interests must take a back seat. Security is more crucial. And Europe, for the time being, will not be able to ensure it on its own. It has just paid the price for that. And it was a sensible move.
Fifteen percent: That is what U.S. tariffs will be on nearly all imports from the EU. This is three times higher than the current tariffs. On Sunday evening, during a meeting with Donald Trump in Scotland, the president of the European Commission accepted the tariff rates without introducing any new duties on U.S. imports to the EU in return. The U.S. president made small concessions, which include agreeing to reduce tariffs on cars from 27.5% to 15%.
The EU had the tools to retaliate against the U.S. but chose not to. Trump ultimately offered the same terms he had agreed to with Japan just days earlier. But they are worse than those in the U.S. and the U.K. agreement.
The exchange of goods and services between the U.S. and Europe accounts for one-third of global trade — there is no more important economic relationship in the world. We cannot rule out the fact that the increase in tariffs by the U.S. will contribute to a further slowdown in global economic growth and accelerate inflation in the U.S. itself. This is something that Brussels has long warned about.
On Sunday evening, however, Ursula von der Leyen referred to "rebalancing" trade between the U.S. and the EU. She began to echo Trump's narrative, in which he claims that the huge deficit in the exchange of goods on the part of America is not the result of the weak competitiveness of American goods but allegedly unfair competition from Europe.
The EU was not defenseless on the issue. It had a plan ready to impose its own tariffs. It could also impose severe restrictions on American services, in which Washington generates a large surplus in exchange with Europe.
Without America, Europe Cannot Ensure Its Own Security
Von der Leyen, however, certainly after consulting with the leaders of the key European countries, approached the issue more broadly. This fall, the Pentagon is expected to review the U.S. military presence in Europe. It is also uncertain whether U.S. support for Ukraine will continue. And last Friday, during a meeting with Polish Prime Minister Donald Tusk, the commander in chief of U.S. forces in Europe, General Alexus Grynkewich, warned that Russia would be ready to attack one of the European NATO countries as early as 2027.
In this situation, the EU's commercial interests must take a back seat. Security is more crucial. And Europe, for the time being, will not be able to ensure it on its own. It has just paid the price for that. And it was a sensible move.
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