Trade

EU Trade Chief Says US Rejects Talks to Avoid Tariffs

Written by SK Ashby

The question of whether or not Trump will impose tariffs on European goods in response to European subsidies for Airbus later this month appears to be settled, the only question remaining is how large the tariffs will be.

The World Trade Organization (WTO) is expected to give the green light to Trump's tariffs at some point in the next week and while Trump regime officials say the European Union (EU) isn't interested in talks, the EU's top trade official says the U.S. has rejected talks.

From Reuters:

The EU, however, said on Monday it was Washington that stood in the way of a negotiated settlement. [...]

“Our view is that we have enough tariffs in the world as it is ... The U.S. president likes to make deals so we have offered to try to make a deal to find a negotiated solution,” EU Trade Commissioner Malmstrom told a briefing.

“So far, unfortunately, the U.S. has not said that they are willing to negotiate, at least not until they have imposed their tariffs, which they are likely to do quite soon,” she said.

This is a familiar playbook; the one he has used against China.

Trump never even tried to negotiate with the Chinese government before he imposed tariffs on solar panels, steel and aluminum, and eventually thousands of other goods. He just did it, and it looks like he's going to do the same with Europe.

Trump believes that shooting first and asking questions later puts him in a position of strength, but all it really does it make it even more difficult for foreign leaders to sell compromises and deals to their own voters and citizens who don't take kindly to being pushed around by unhinged and arrogant Americans.

Trump genuinely does not believe that foreign leaders and countries have dignity or sovereignty. Trump's train of thought -- to the extent that he even has consistent thoughts -- is that he is the only one who matters.

The European Union may be more willing to compromise with Trump than China is, but within limits that aren't entirely clear yet. It's these limits that could lead to an even wider trade war with the EU because Trump will see it as a challenge to increase pressure and extend his tariffs beyond agriculture to possibly cars and car parts.

While the WTO found that the EU illegally subsidizes Airbus, the WTO also found that the United States illegally subsidizes Boeing. That's all the justification the EU will need to retaliate when Trump imposes tariffs.