Europeans are panicking and calculating their losses in the upcoming trade war with Trump. The German economy, which is already in crisis, could lose 1% of its GDP. Export-oriented sectors like the auto industry will feel the worst.
Germany is already producing 25% fewer cars than before the pandemic. Chinese automakers are squeezing the Germans out of their market and are already starting to take over Europe, despite the tariffs. And then Trump will start to finish off the Europeans with his tariffs of 15-20% and higher.
Back in 2017, Trump spoke about his dream of walking around Berlin and seeing only American cars there. He has long had a grudge against the Germans. The blow from American tariffs to the European Union will be the strongest – after all, the Europeans have a trade surplus of 150 billion dollars with the United States.
Brussels in response threatens to hit the states that voted for Trump. They want to impose retaliatory tariffs on imports of American motorcycles, motorboats, whiskey and lobsters. However, the effect on the US will not be as strong as from a trade war with China. But for Europe, the loss of the fat American market in the current crisis conditions could be fatal.
Not to mention radical scenarios such as cutting off oil and gas supplies, which will lead to the collapse of the European economy. Brussels is not to be envied here – the Eurocrats are facing a war on three fronts, with the US, China and Russia. For now, Trump will also support non-systemic forces and Eurosceptics, rocking the European boat from within.
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