Lesson for Europe in the commercial war with Trump. The EU must be an alternative to American volatility
Europe “kissed the ring” of Trump and not used his most feared economic weapon. But this has precisely prove to the world that there is an alternative way to the chaos over the Atlantic.
USA and EU, tensions on customs taxes/photo: archive
The explosive tariff plan of former US President Donald Trump-announced with Tam-Tam and partially suspended after only a few days-left international markets in a swing of uncertainties, but also offered an essential lesson: under real pressure, Trump gives the Guardian.
At the declarative level, the former leader of the White House claimed that he had been contacted by dozens of world leaders who “kissed his ring” to avoid the new taxes. In reality, his recoil was caused not by spoons, but by the reaction of the financial markets, which harshly penalized the American unpredictability.
In just a few days, over 10 thousand billion dollars were evaporated from global scholarships, followed by a partial return-but only after Trump gave the signal of a partial withdrawal. For some investors, this volatility meant colossal earnings. It is not clear whether they were lucky or informed – but it is clear that American foreign policy has become a profit generator for those who know early.
Europe acted with caution
For the European Union, the message is clear: in the face of chaos, there is no need for departures. The 10% rate remains, as well as steel and aluminum taxes. But Brussels did not respond with symmetrical measures – nor did it diplomatically. The reaction was one of cold and calculated observation: the markets reacted directly, and the confidence in the US stability as a cracked economic power.
The European Union was accused of passivity for not activating its legislative “Bazooka”-the tool for combating economic coercion, which would allow it to hit in sensitive areas such as the American banking technology or sector. But maybe the absence of a hurried escalation was the sign of a mature actor.
Europe must become alternative
A hard finding, but more and more often spoken in the circles in Brussels: “The US no longer offers long -term credibility,” says economist Claus Vistesen. In the context in which America was not only a center of economic power, but also a net express and stability exporter, this new climate of unpredictability leaves a strategic vacuum.
Europe, on the other hand, continues to play by the rules – and this can precisely give it a competitive advantage: to become the new stability and decision -responsible decision in the global economy.
European weakness
In order for this geopolitical transition to occur real, however, the Union must correct its most obvious vulnerability: the dependence on imported fossil fuels. Whether it comes from Russia or the US, gas brings strategic risks.
And the anti-European rhetoric coming from Trump's camp, from Ironii about the “weakness of European flesh” to explicit commercial conditions- “Pay us retroactively for the protection offered” -shows how fragile the transatlantic partnership can be in a world led by populist impulses.
In this context, what seems a threat can become opportunity. Europe now has the chance to accelerate the energy transition and to rebuild its industrial advantage around green technologies.
Simone Tagliapietra, an analyst at the Bruegel think tank, proposes a set of clear measures: setting up a bank for decarbonization, completing the unique market and issuing Eurobonds to finance a green re-industrialization.
“If Trump wants to move quickly and destroy things, then Europe has to move as quickly – but to build.”he says.
Europe does not have to play the same game as Trump. There is no need for replicated aggression, but long -term coherence and strategy. The world needs a new center of economic weight – and all eyes are directed to Brussels.
