The European Union clarifies…how it will deal with Trump’s trade war?

The European Union intends to propose that Europe increase investment in defense, in exchange for not launching a trade war.
This comes according to what was announced by Stephane Ségournet, Vice-President of the European Commission responsible for industrial strategy.

Europe and Trump

Sigourney added: “We cannot fight a trade war and at the same time build a European defense.”
He continued, “The agreement with us translates as a yes to disengaging from European defense and building European security guarantees in addition to NATO.”
He continued: But we cannot do that with a trade war at our doorstep. Some national budgets are unable to increase the defense budget to 3% of GDP.
“We will not be able to organize ourselves effectively, especially on the Eastern Front, if we also face a trade war that costs us a lot,” he stressed, referring to the aid allocated to Ukraine.

Trade war

When asked about the European response “forcefully” to a trade war, the European Commissioner said cautiously, “I cannot answer.”
He stressed that the Europeans would suffer if customs duties on American products were increased, and “the trade balance with the United States tends in favor of the Europeans.”
He continued: “There are two possible strategies, an offensive approach and a defensive approach. We can respond to customs duties, but the Europeans will pay the price,” and he gave as an example the case of European companies that buy spare parts from the Boeing Group.

Suspension of gas supply

“We have to be aggressive and perhaps even extreme if necessary,” he explained.
He also pointed to a “defensive approach, which consists of re-adjusting some purchases around the world,” for example, “suspension of liquefied natural gas supplies from Azerbaijan to buy more of the material from the Americans.”
He continued, “The whole world is hanging on what Donald Trump will do tonight. He will issue a number of decrees, and I believe that neither Canada nor Mexico nor we nor the rest of the world knows the exact content of these decrees.”
Many in America and the world are concerned after US President-elect Donald Trump launched a torrent of economic threats, including tariffs on allies as well as adversaries, and threatened to deport 11 million illegal immigrants.