The European Union is bracing for a hostile trade policy from Donald Trump. If the Republican Party candidate were to become president again and impose tariffs, European officials would first consider reaching an agreement with the Americans. And if that fails, they would consider targeted retaliation, according to reports from the Financial Times.
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Donald Trump has consistently defended his desire to impose 10% tariffs on products imported into the United States. The Republican candidate continues to target China, but he has also assured that he will not spare the Europeans.
If this were to happen, European products would become less competitive than American products. Brussels estimates that EU exports could fall by around 150 billion euros per year. Added to this is the risk of inflation: an increase in customs duties could lead to a price increase of almost 2%.
This is why European officials are already working on this issue of American customs tariffs. According to Financial TimesBrussels wants to first favour the cooperative approach with the establishment of targeted agreements. The British daily adds that the negotiators plan to approach the Trump team if he wins the presidential election next November to discuss which American products the EU could buy in larger quantities.
If the talks fail, Brussels could then decide to implement retaliatory measures against the UNITED STATES. “ We must show that we are a partner of the United States, not a problem.analyses a senior European official at Financial Times. We will seek agreements, but we are ready to defend ourselves if necessary. We will not be guided by fear. »
The EU economy is also growing at less than half the rate of the US, so Brussels is hoping that Trump has no desire to stoke inflation. But ” whatever happens this time we are better prepared “, assures the European official to the British daily.
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