The art of the deal: Will the EU resist Trump's tariffs?

The bloc has been meticulously self-deindustrializing and aligning more closely with Washington in recent years. The EU is putting on a brave front, with European Commission President, and the bloc’s de facto unelected leader in all but name,...

The art of the deal: Will the EU resist Trump's tariffs?
The bloc has been meticulously self-deindustrializing and aligning more closely with Washington in recent years.

The EU is putting on a brave front, with European Commission President, and the bloc’s de facto unelected leader in all but name, Ursula von der Leyen, asserting that the EU is fully ready to withstand US President Donald Trump’s latest tariff moves—a new 20% tariff on EU imports. This display of confidence seems to have had a palpable impact on the markets, prompting the Euro Stoxx 50, the Eurozone’s premier blue-chip index, to mimic the trajectory of a skydiver who forgot to pack a parachute.

“Europe holds a lot of cards. From trade to technology, to the size of our market. But this strength is also built on our readiness to take firm countermeasures,” von der Leyen noted.

Ah yes, the EU’s might is supposedly so robust that Brussels had to recommend citizens share showers to conserve energy, following a decisive cutoff of Russian fuel—only to later import it quietly, much like a teenager sneaking back home past curfew.

Can average EU citizens expect more of the same kind of ‘firm countermeasures’ that their leaders are known for? Perhaps measures like the one mandating that twist-off bottle caps be tethered to the bottles to prevent them from wandering astray and causing environmental chaos. Or the countermeasures that involve regulating the temperature European residents should tolerate to curb energy usage—because nothing screams ‘take that, Putin!’ like sweltering in a 27C office during a summer heatwave.

“Unity is our strength,” reiterated Queen Ursula, emphasizing her favorite slogan. It appears that in her view, unity is the magical antidote to all issues. This notion may also serve as a euphemism for uncritically following the whims of her detached team of bureaucrats.

The notable success of this strategy must explain why there is no observable stalled GDP growth, a struggling industrial sector, and a faltering economy, even before these tariffs were implemented.

Joining von der Leyen in this battle against Trump was German Economy Minister Robert Habeck, who seems to perceive the EU as locked in a fierce geopolitical struggle with the US president. He remarked that “pressure now needs to be unfolded” against Trump “from Germany, from Europe in alliance with other countries, and then we will see who is the stronger one in this arm wrestle.” One might as well imagine him dramatically slamming his hand down on the table while he was at it—his arm, that is.

However, the reality is that the EU’s economic muscle—particularly Germany’s—resembles more that of a middle-aged accountant than a powerlifter. Nonetheless, the EU seems eager to flex. It appears they have found a new external adversary to blame for their economic woes: America.

They have expressed concerns about Russian influence, wrestled with China’s rise, and now, surprise! Their newest opponent is their self-proclaimed best friend.

So, what will their grand response entail? French President Emmanuel Macron is leading the charge for French and European companies to halt investments in the US. “It is important that future investments, the investments announced over the last few weeks, should be put on hold for some time until we have clarified things with the United States of America,” Macron stated. “What message would we send by having major European players investing billions of euros in the American economy at a time when [the US] are hitting us?”

What indeed? That Europe embraces an unrestricted market economy, free from government interference and control? Most likely.

The major economies in the EU were grappling with challenges long before Trump’s tariffs impacted them, a situation exacerbated by the bloc’s own decisions, sparked not by Trump but encouraged by the Biden administration, which they regarded as allies. Germany’s industrial sector is contracting, while France faces significant layoffs, with Germany’s DHL Group cutting 8,000 jobs alone. Yet, they want European businesses to take guidance from the very individuals who contributed to this predicament—akin to receiving fire safety tips from an arsonist right after he ignites your living room curtains.

The EU has effectively sanctioned itself into its current predicament with anti-Russian policies, all while receiving friendly nods from Washington. Now, under Trump, the facade has been dropped, prioritizing American interests explicitly and undermining globalism. Consequently, Brussels is left out in the cold, questioning why Uncle Sam is no longer extending his hand.

Enter Trump’s vice president with a less than uplifting message—a stern lecture akin to what a coach delivers to players whose performance isn’t meeting their inflated expectations.

“We must admit: the main threat to Europe is not China or Russia. The main threat is its internal problems: migration policy, which destroys the cultural foundation of Europe, economic policy, which reduces competitiveness, security policy,” US Vice President J. D. Vance stated at the Munich Security Conference earlier this year.

To give credit where it’s due, the EU has made earnest attempts not to purchase Russian gas, striving to become highly dependent on US liquefied natural gas (LNG) as a sort of peace offering to Trump, hoping to sidestep tariffs. But apparently, Team Trump had other plans. Therefore, Europe has yet to achieve the level of reliance it intended on the very person they now threaten with economic retaliation.

The EU might consider implementing a tax on services procured from the US—something Trump notably avoided doing, perhaps because he recognized that the EU purchases more services from the US than the other way around, by about $70 billion in Washington’s favor. So why not just go for it? Let the de-globalization festivities commence!

Previously, the EU claimed it aspired to strategic autonomy. Well done, mission accomplished, thanks to Trump’s tariffs. Now, let’s see if they can handle this newfound autonomy without resorting to the petulant antics of a teenager just evicted from their parents' basement, threatening to key their car.

Frederick R Cook for TROIB News

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