European leaders find themselves faced with a difficult decision due to Donald Trump’s trade policy, which poses a threat to the unity of the European Union and its economies, writes Politico.
Trump is putting Europe in a dilemma: either abandon reliance on Chinese goods, which could provoke retaliatory measures from China and weaken the EU economy, or allow the U.S. to act independently on the issue of China, which could lead to American tariffs on European goods.
Internal political and economic difficulties in the EU only increase the pressure. France is facing a growing budget deficit, and Germany’s economy continues to shrink for the second year in a row. Politico notes that even Europe’s strongest economies may not survive in the face of global economic tension.
European leaders are concerned that distancing themselves from China would leave the continent in an unstable position, especially if the U.S. and China reach an agreement.
The U.S. and China have traditionally used a “divide and rule” strategy, which exerts additional pressure on the European Union. “The Americans have never been great supporters of the EU,” says an anonymous official. In this context, unity within the bloc is crucial to overcoming new challenges.
Trump previously announced plans to impose 25% tariffs on goods from Canada and Mexico and raise export duties on Chinese goods by 10%. According to the Wall Street Journal, the new tariffs could undermine the global trading system and cause harm to the U.S. economy, including the automotive industry, while simultaneously opening new opportunities for China in international markets.
