Seeds Sown for Major Transatlantic Trade War Starting in May
Trump wants a trade treaty with the EU to include agriculture. France says no. It only takes one.
Trump has made a considerable number of trade threats only to eventually back down. Will it play out that way again?
For a number of reasons, I think Trump will act this time. First, let’s look at the threats.
Severe Pain
On February 25, Trump told the EU Play Ball or ‘We’re Going to Tariff the Hell Out of You’
“The European Union is very, very tough. Very, very tough. They don’t allow our products in. They don’t allow our farming goods in,” Trump said at a meeting with U.S. governors, according to a transcript from the White House. He added that “maybe, in certain ways,” the EU is “tougher than China.”
On March 14, Trump Warned EU of ‘Severe’ Economic Pain if No Progress On Trade Talks.
Partial Agreement Won’t Fly
On April 15, Reuters reported EU Ready to Launch U.S. Trade Talks, but Without Agriculture.
The EU approved two areas for negotiation, opposed by France with an abstention from Belgium. But agriculture was not included, leaving the 28-country bloc at odds with Washington, which has insisted on including farm products in the talks.
EU trade agreement are unanimous. Tiny countries can and have influenced outcomes. It took over a decade to get an agreement with Canada over concerns of tiny nations.
Even if US-EU trade talks take place, nothing will come of them and Trump will quickly get frustrated.
Climate Change Now in the Picture
On April 18, France has signaled it will not cooperate with Trump in any way.
Please consider the new French demand: No EU-US Trade Talks Unless Trump Supports Climate Deal.
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