This is how the European Union is preparing for Donald Trump. The “carrot and stick method”

The European Union fears a tariff war with the US if Donald Trump takes the White House. That is why Brussels prefers to play it safe and has developed a two-stage trade plan. Donald Trump in his election campaign on all products imported from China. But that’s not all. Trump also promises to introduce a minimum tariff of 10%, which, according to Brussels officials, could cause a decrease in EU exports by about 150 billion euros per year.

Donald Trump Back in the White House? “Carrot and Stick Approach”

“EU officials believe the carrot-and-stick approach is the best response to Trump’s promise,” writes the Financial Times, adding that the European Union has a plan for this. If Trump wins the November election, negotiators plan to contact his team before he takes office to discuss which American products the EU could buy in larger quantities. If the talks fail and Trump imposes higher tariffs, the European Commission’s trade department will draw up a list of imports that could be subject to tariffs of 50 percent or more. “We need to show that we are a partner to the United States, not a problem. We will seek an agreement, but we are ready to defend ourselves if it comes to that. We will not be guided by fear,” says one senior EU official.

Tariffs are suspended. This is the result of an agreement with Joe Biden’s team

After Donald Trump imposed tariffs on imports of steel and aluminum from the EU and other countries worth 6.4 billion euros in 2018 on national security grounds, the European Union responded with rebalancing tariffs worth 2.8 billion euros, the Financial Times recalls. By designing “retaliatory measures,” “Brussels has decided to target Trump’s core voters,” imposing tariffs on whiskey, Harley-Davidson motorcycles and motorboats. However, these tariffs are currently suspended, as part of a temporary agreement with the Joe Biden administration.