by Oui
Sat Jul 26th, 2025 at 02:22:36 PM EST
'EU nastier than China': Trump bashes Europe over trade ties, issues warning, 'We've all the cards' | Economic Times - 12 May 2025 |
Trump sees a divided Europe with doves and hawks among the member states - and is taking advantage of that | De Volkskrant | (Dutch)
US President Donald Trump wants to raise trade tariffs for the European Union to 30 percent starting August 1st. Europe is still trying to negotiate a way out, but at what price? What is the EU's worth as a power bloc if it doesn't stand firm?
Trump has a deep aversion to the EU, which has a large trade surplus (in goods) with the US. He was determined to crack down on Europe. "I think Trump is deliberately giving the EU a worse deal than the UK, so people will say the bloc is useless," Vallée agrees. This gives Trump new ammunition to his Eurosceptic friends in Europe, hoping to further weaken the EU.
On the other hand, it's painful if the EU, with all its economic power, can't strike a better deal than the much smaller UK (10%) or Japan (15%). Because that was always the EU's promise: only as a bloc can we stand up to the world's major powers, the US and China. "In recent years, the European Commission has been harping on about being a geopolitical commission, and that trade is the instrument through which it can defend Europe's interests," says Korteweg.
China and the US are nation-states, led by authoritarian presidents who don't hesitate to subordinate economic sectors to what they see as state interests. The EU consists of 27 sovereign states, each with its own interests.
Germany (annual exports to the US: €161 billion) wanted a quick agreement to limit the damage. France (€47 billion per year) advocated for a tough stance. Many member states prefer a deal that limits the damage to an escalating trade war with major consequences for the economy and employment. The EU can hardly apply full pressure if its opponent knows there are doves and hawks among the member states.
Geopolitical dwarf
Another problem is the dependence on the US for security and the war in Ukraine. A geopolitical dwarf can never be a geoeconomic giant, as the negotiations with the US make painfully clear.
