Navigating the Looming Trade War: Options for the EU
The Trump administration’s decision to impose tariffs on a wide variety of state actors increases the likelihood of retaliatory measures and global trade wars. The response of the EU, as a major economic force, will have a significant impact on the stability of the global trading system. Sinan Ülgen suggests in her article for the
Carnegie Endowment for International Peace that ultimately, the reaction of the EU, as a major trading powerhouse, will have a significant bearing on the stability of the global trading system. Three scenarios are possible: First, the EU could decide to take the path of acquiescence. Second, it could choose to retaliate. Under this scenario, the EU would judge that the White House’s extortion should not be condoned, and that the Union cannot comply with its demands. Third, despite the unilateralism of U.S. action, the EU might still decide to engage with its main transatlantic partner with a view to reaching a settlement.
https://carnegieendowment.org
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