The president of the European Commission, Ursula von der Leyen, meets US President Donald Trump at the Davos World Economic Forum on January 21, 2020. Photo: European Union, 2020/EC – Audiovisual Service/Stefan Wermuth

On Wednesday (12), the European Union announced countermeasures against recent 25% tariffs imposed by the United States on steel and aluminum imports. According to information, the European plan provides rates that could reach up to 26 billion euros (approximately $ 28 billion) in American products. The measure, which will be fully applied from April 1, resumes the rates that had already been implemented during Trump’s first term and later suspended, including some previously in force.

For the US, the measure represents an attempt to protect its domestic industry, but now turns to penalize products that may cause damage to politically sensitive areas – that is, regions governed by republican leaders. Among the targets is, for example, the soy produced in Louisiana, home of the mayor, Mike Johnson. This strategy aims to pressure the US government to reopen the negotiating table, while the EU, in turn, maintains a strong but “proportional” response stance, as pointed out to the European Commission, Ursula Von Der Leyen.

“The contracted we take today are strong but proportional,” said European Commission President Ursula Von Der Leyen during a press conference in Strasbourg, France. “We firmly believe that in a world full of geoeconomic and political uncertainties, it is not in the common interest overloading our economies with these tariffs.”

Panel of the most affected states

The EU strategy is multifaceted and seeks to maximize political impact in the US, while minimizing economic damage to the European bloc. An ironic aspect of the new EU strategy is the surgical focus on products from states that have historically been governed by Trump supporters. The idea is to create pressure in key areas led by Republicans, forcing a faster political response from Washington. By aiming at Products from Republican -led states, the EU seeks to explore internal divisions in the US Congress, where there are growing criticism of Trump’s trade policies.

“We are ready to negotiate,” said Maros Sefcovic, the EU head of commerce, after visiting Washington last month to try to avoid climbing. “The interruption caused by tariffs is avoidable if the US government accepts our extended hand and work with us to reach an agreement.”

Among the main targets are:

  • Louisiana: The soy produced in this state, a support base for influential figures such as Mike Johnson, is one of the products highlighted by the EU.
  • Bourbon do Kentuckyno republican leader not Senate, Mitch McConnell.
  • Harley-Davidson and Jeans Levi’s motorcyclesiconic symbols of the American industry, already affected in previous disputes.
  • Other republican states: Textile products, appliances and agricultural goods from regions where protectionism and nationalist discourse are strong will also be targeted.

This approach aims to impact the economic and political sectors of areas that sometimes demonstrate a rhetoric of ā€œMake America Great Againā€, but now they can feel the weight of new tariffs.

Losses and damage to all

The European block seeks to balance two goals: minimize internal losses and explore household cracks in the US. Prioritized products such as steel and aluminum, which represent only 0.3% of EU GDP, avoiding critical sectors such as energy. When aiming for republican states, the EU expects local pressures to force Trump to retreat. “We want Midwest farmers and Harley-Davidson CEOs to cover the government,” a European diplomat said anonymously.

    The strategy includes a negotiating window until mid -April, led by the EU chief of commerce, Maros Sefcovic, who offered the US increased natural gas imports and defense goods.

    For Europe, retaliatory tariffs represent almost four times the value of the similar measures adopted during Trump’s first term, when the US reached about $ 7 billion in block metal exports. Now the scope is much larger, reflecting the seriousness of the European response.

    While the EU aims at the US, its domestic market faces a parallel threat, the diversion of global exports and the saturation of the market. With American tariffs, Asian and North African steel, once intended for the US, it can flood Europe. Eurofifer lobby estimates that for every 3 tonnes diverted from the US, 2 reach the EU. In 2018, this led to a 12% drop in steel prices in the block. ā€œWe have already suffered from cheap imports. Now the scenario will be worse, ā€warned a Eurofer spokesman.

    A diplomacy before dawn

    The possible scenarios for negotiation involve a last -minute agreement. The EU signals flexibility, offering reduced industrial tariffs in exchange for access to the US market. Or a dangerous climbing. Trump promised to retaliate with 100% rates about European cars in April, which would affect giants such as Volkswagen and BMW, already in crisis.

    Global impact must involve inflation and commercial fragmentation. Sectors such as civil and automotive construction in the US and EU may face higher costs. The dispute reinforces trends of ā€œmisleadingā€, with economic blocks prioritizing domestic production.

    While the EU is preparing to impose new fares from mid -April, the global scenario is expected to become more uncertain. The new round of measures can pave the way for negotiations that redefine the terms of international trade – a movement that will ultimately affect both American and global economies and press states and sectors sensitive to adjustments to global trade policy.

    Not only does trade war threaten the economies of both blocks, but can also undermine decades of strategic cooperation in areas such as security and foreign policy. In an increasingly fragmented world, the outcome of this dispute can define the future of transatlantic relations.

Source: vermelho.org.br



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