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NEWS

Europe's responses to Trump's threat: avoiding a "stupid" trade war, buying more 'Made in USA,' and fear of China benefiting

Updated

he commercial threats from US President Donald Trump have shaken Europe. In an informal summit on Monday, intended to discuss a crucial topic such as Defense spending, European leaders have proposed their solutions to prevent or, failing that, confront a possible trade war. However, there are no specific measures yet, only proposals and statements of intent while the American magnate accelerates his challenge

President Donald Trump.
President Donald Trump.AP

"Of course, we are also preparing on our side, but it is clear that there are no winners in trade wars," pointed out the EU High Representative for Foreign Affairs, Kaja Kallas, in the morning, indicating an important key: that if a war breaks out, "China will be the one laughing on the other side."

Polish President Donald Tusk, who is also responsible for the rotating presidency of the Council, directly described the potential war as "stupid and unnecessary." He, along with the EU's chief diplomat and successor to Josep Borrell, pointed towards the east. "It would be a cruel paradox if at this moment of direct threat from Russia and China's expansion, we find a reason to conflict with our allies," he said.

"We can design our own issues and also react with tariff measures to tariff measures," noted German Chancellor Olaf Scholz, while French President Emmanuel Macron added that if Europe is attacked in the commercial realm, "it must stand up and react." Once again, declarations and intentions but nothing more, although it is more than what Pedro Sánchez has indicated, who avoided addressing the media to explain his position on Defense spending.

It is also noteworthy that Danish Prime Minister Mette Frederiksen pointed out that a tariff war between the US and the EU would be a war between "allies" after Trump publicly expressed interest in Greenland, a territory that is part of the Kingdom of Denmark. Among the few concrete measures, Lithuanian President Gitanas Nauseda pointed to a specific issue: that Brussels should propose "something that could be interesting and attractive" to Washington. For example, free trade on automobiles, buying more liquefied natural gas from the US, or increasing purchases of military equipment.

Ultimately, buying more 'Made in USA,' which was something proposed by the President of the European Central Bank (ECB), Christine Lagarde, back in November. "We could offer to buy certain things from the United States and indicate that we are willing to sit down and see how we can work together," she stated in an interview with the Financial Times after Trump's election victory and the then highly probable imposition of tariffs on the EU.

And that scenario has only been confirmed, as Trump himself stated last night: "It will definitely happen," he said when asked about tariffs on the EU. "They don't take our cars, they don't take our agricultural products. They take almost nothing, and we take everything, millions of cars, huge amounts of food and agricultural products," he asserted. This aligns with what Nauseda and Lagarde proposed.