Faced with the risk of a Trump trade war, what response will the Europeans have?

The trade war with the United States ultimately did not start on the first day of Donald Trump's mandate, Monday January 20. But it's only a matter of time. After promising, throughout his electoral campaign, that he would increase customs duties, the new American president was content, in his inauguration speech, to reiterate his threats: “Instead of taxing our citizens to enrich other countries, we will tax foreign countries with tariffs to enrich our citizens. »

He clarified his remarks, mentioning imposing a 25% tax on imports from Mexico and Canada from « 1^is FEBRUARY “. As for the Europeans, they “are hard, very hard. They don't buy [leurs] cars, nor [leurs] agricultural products, they buy almost nothing »said Mr. Trump. “So we are going to solve this problem by imposing customs duties or by forcing Europeans to buy our oil (…) and our gas »he continues. During the campaign, he spoke of 10% on European imports. On Monday, he opened a new front on taxation, signing a presidential memorandum which withdraws the United States from the international agreement on the taxation of multinationals (which was to impose a minimum rate of 15%, but which Congress had not never ratified).

This seems to confirm what his teams have been suggesting for months: customs duties are a negotiating weapon, with both his allies and his adversaries. “But he’s not bluffing”estimated on January 14, Brian Coulton, the chief economist of the Fitch rating agency. Sooner or later, as Mr. Trump did during his first term, he will impose new tariffs. With two regions of the world in their sights which display a strong trade surplus: China, of course, but also Europe.

You have 74.11% of this article left to read. The rest is reserved for subscribers.