EU's Best Trade Weapon? Playing U.S. Politics Against the GOP

How the EU Can Exploit GOP Divisions to Win a Trade War

First of all, tariffs are a terrible idea. I’ve written about it in the past, which you can read here. They are the economic equivalent of punching yourself in the face to teach your enemy a lesson.

Trump has repeatedly threatened to impose sweeping tariffs—up to 25% —on some imports from the EU. April 2nd is the ground zero when the Trump administration announces the plans for wide-scale tariffs against the E.U.

In response, the European Union must prepare a strategic retaliation plan to protect its economic interests and, if nothing else, to stand up to Trump’s economic policy of trying to bully allies into submission. During his first term, Trump imposed tariffs on European steel and aluminium, leading to a tit-for-tat response from the EU, which targeted American exports to Europe. If Trump follows through on his plan to escalate trade hostilities again, the EU must carefully select U.S. exports that maximise political and economic pressure while minimising harm to European consum…