The European Union is forging ahead with a two-stage trade strategy to fight or co-operate with Republican Party candidate for the US presidency Donald Trump should he enter the White House. This was reported by the Financial Times.
“Brussels is developing a two-stage trade strategy to fight Donald Trump, offering the Republican a quick deal if he wins a second presidential term and targeted ‘retaliation’ if he chooses punitive tariffs instead,” the report said.
According to the newspaper, EU officials see a “carrot and stick” approach as the best response to Donald Trump’s promise to impose a 10 per cent minimum tariff, which they estimate could cut EU exports by about 150 billion euros annually.
The piece notes that the negotiators plan to reach out to the Republican’s team before he likely takes office to discuss which “American goods the EU could buy in larger quantities.” If talks about improving financial relations fail and Trump applies higher tariffs, the EC’s trade department will draw up “lists of imports that could be subject to duties of 50 per cent or more”.
“We need to show that we are a partner of the USA, not their problem. We will look for ways to make deals but are prepared to defend ourselves if necessary. We will not be guided by fear,” said a senior EU official.
Recall, earlier Bloomberg agency mentioned that the team of the US presidential candidate from the Republican Party Donald Trump intends to call on the member countries of the North Atlantic Alliance to allocate 3 per cent of GDP for the expenses of the military-political bloc.