The escalating trade war initiated by former US President Donald Trump has primarily affected the United States, as highlighted by ECB President Christine Lagarde. She criticizes Trump's erratic tariff policies, which have introduced unprecedented uncertainty in global markets. The European Union has responded to US tariffs on steel and aluminum with its own countermeasures, targeting American products such as bourbon whiskey, motorcycles, and peanut butter. This tit-for-tat strategy includes potentially steep tariffs on European wines and champagnes.
The European Commission's analysis suggests that the US faces greater harm than the EU from these trade barriers. European exports worth billions are at risk, and the EU is keen to bolster its own industries. The trade conflict serves as a crucial wake-up call for Europe, prompting discussions on increased defense spending and greater economic independence. Despite the challenges, some European activists are responding with initiatives like 'Buy from EU', encouraging support for local products. Meanwhile, the economic landscape continues to shift, with the US threatening further tariffs on Canadian, Mexican, and Chinese imports, reshaping global trade dynamics.
