The Inside Story Podcast Will Trump impose tariffs on the European Union?
May 24, 2025
Paolo Von Schirach, President of the Global Policy Institute, shares his insights on international trade dynamics. Will Hutton, political economist, analyzes the tension between the U.S. and EU amidst Trump's tariff threats. Brian Wong discusses the broader implications for global markets and Chinese trade relations. They explore whether Trump's moves are genuine negotiations or dominance tactics, the historical context of U.S.-EU relations, and the potential economic fallout of a trade war on both sides.
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Tariffs Could Be Near Trade Embargo
- Trump's threat of 50% tariffs on EU imports could be a negotiating ploy or a near trade embargo. - The EU struggles to negotiate as a bloc, complicating responses to tariffs.
EU Likely to Resist Hard
- Trump’s 50% tariff on EU goods contrasts with 30% on China, showing disproportionate pressure on Europe. - EU likely to resist hard and retaliate, expecting Trump may back down.
EU Must Balance Strength with Diplomacy
- Trump reacts to strength and lobbying pressure but tariffs risk hurting American growth and inflation. - EU must balance extending an olive branch with firm retaliatory measures to defend interests.