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CEPS in focus

CEPS

52 episodes

3 months ago

Dive into CEPS in focus, our new podcast series delivering concise, insightful analyses on the latest EU policy developments. Each episode features experts commentaries and analyses, bringing the depth of CEPS research straight to your ears. Tune in to stay informed, wherever you are.

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Hosted on Acast. See acast.com/privacy for more information.

News Commentary

News,

Politics

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38. To retaliate or not to retaliate? Or three reasons why the EU shouldn’t react to US tariffs (at least for now)

CEPS in focus

7 minutes 48 seconds

6 months ago

38. To retaliate or not to retaliate? Or three reasons why the EU shouldn’t react to US tariffs (at least for now)

To retaliate or not to retaliate? Or three reasons why the EU shouldn’t react to US tariffs (at least for now)

By Cinzia Alcidi

Donald Trump’s ‘Liberation Day’ has delivered the highest tariff hike in nearly a century. If they’re implemented, the average US tariff rate will rise to 22.5%, around 11 percentage points higher compared to March. Trump has given the world just one week to absorb the news and potentially begin negotiations.

European Commission President Ursula von der Leyen was quick to promise a proportionate response while maintaining an openness to dialogue. But the reality is that any retaliation would be far from ideal. It would be driven by the political pressure to show that such aggression won’t be tolerated and not by cold-hard strategy (as it should be).

There are at least three reasons why it would be wise for the EU not to react – at least for now – especially if reacting involves duties or taxes targeting US goods or services.

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