A Letter to Europe You're stronger than you think. Act like it
18 hours ago
- #EU-US Relations
- #Economic Policy
- #Trade War
- Donald Trump announced 50% tariffs on EU goods but postponed them until July 9 after talks with Ursula von der Leyen.
- The author advises the EU not to appease Trump, as substantive concessions are unnecessary and symbolic wins would embolden him.
- EU and US tariffs were low (under 2%) before Trump's aggressive trade policies.
- Trump criticizes Europe's trade surplus with the US, but the deficit is smaller when services are included.
- Ireland's reported trade surplus with the US is largely due to accounting tricks by multinational companies to avoid taxes.
- The EU's true trade surplus is likely under $100 billion, insignificant compared to its $19 trillion GDP.
- The EU is not highly dependent on the US market, buying only 3% of its production, while US companies rely on European goodwill.
- Europe is not a declining society; its economy remains dynamic outside the tech sector.
- Europe lags in tech but could catch up as the US undermines its own research and education systems.
- The author urges Europe to stand firm against Trump's demands, as it is not dependent on the US.