Economy

mahatmakanejeeves

(61,606 posts) Wed Nov 20, 2024, 09:49 AM Nov 20

How Trump's tariffs could spark a trade war and 'Europe's worst economic nightmare'

How Trump’s tariffs could spark a trade war and ‘Europe’s worst economic nightmare’
European countries could be among those hardest hit if Trump follows through on tariffs. The European Union says it wants to negotiate but is prepared to retaliate.

Shipping containers are stacked in Hamburg. (Phil Noble/Reuters)

By Ellen Francis and Kate Brady
November 20, 2024 at 8:21 a.m. EST

The prospect of a trade war ignited by the Trump administration is looming over European capitals. The European Union — which counts the United States as its largest export market and one of its closest strategic allies — could be among those hardest hit if President-elect Donald Trump follows through on his tariff plans.
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Already, Europe’s major economies are lagging behind the United States in their post-pandemic recovery. Economists say that protectionist policies imposed by Trump after taking office in January could trigger further contraction on the continent, while straining alliances.

Here’s what to know.

{snip}

By Ellen Francis
Ellen Francis is The Washington Post’s Brussels bureau chief, covering the European Union and NATO.

By Kate Brady
Kate Brady is a researcher and reporter based in The Washington Post's Berlin bureau. She has been at The Post since early 2023 and has been reporting from Germany for the best part of a decade.follow on X @bradyinberlin

3 replies

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Highlight:

How Trump's tariffs could spark a trade war and 'Europe's worst economic nightmare' (Original Post) mahatmakanejeeves Nov 20 OP

Holy Moley Mother of God ReRe Nov 20 #1

If Trump passes his tariffs, other countries will retaliate as they did in 2018. Lonestarblue Nov 20 #2

Putin's dream is to destroy US and Europe economically. Irish_Dem Nov 20 #3

ReRe

(10,902 posts)

1. Holy Moley Mother of God

Reply to mahatmakanejeeves (Original post)

Wed Nov 20, 2024, 10:03 AM

Nov 20

He must be stopped! This has gone beyond politics.

Lonestarblue

(11,982 posts)

2. If Trump passes his tariffs, other countries will retaliate as they did in 2018.

Reply to mahatmakanejeeves (Original post)

Wed Nov 20, 2024, 10:07 AM

Nov 20

China hugely reduced their purchases of soybeans, and Trump spent millions of dollars to placate US farmers, accomplishing nothing but forcing China to go to other countries and encourage them to build their markets to provide China with soybeans. China has never returned to its former level of purchases of US soybeans. Biden left Trump’s tariffs in place for reasons unknown to me, which Republicans repeated often to claim they were thus not bad. What was rarely reported was that Biden negotiated with China to increase its purchases of soybeans, a promise China did not fully live up to.

In 2018, Trump also slapped tariffs on some aluminum and steel imports. The EU retaliated by slapping a 25% tariff on some US goods, notably Kentucky bourbon. Kentucky voters are among the staunchest supporters of Trump and Republicans. The Democrats running in 2026 need to be running on economic issues like this because Trump’s tariffs will hurt many businesses. They cannot rely on the media, and never could really, to get any negative economic message out about Trump’s actions. Democrats will need to find other ways of communicating with voters in their local communities if necessary.

“The EU is one of our biggest markets for exporting bourbon. So that really hurt those tariffs beginning in 2018; took a huge, huge bite out of exports, hundreds of millions of dollars a year. For reference sake, in 2019, Kentucky had exported about $567 million worth of spirits and that’s of all categories of spirits; primarily, that’s going to be bourbon. But 567 million; by 2020, we were down to 390 million, and through a series of efforts and a lot of negotiation from a lot of interested parties, we were able to get those tariffs suspended. So, they still exist. They’re just suspended in suspended animation.”

https://www.msn.com/en-us/money/markets/possible-tariffs-worry-kentucky-distillers-about-future-of-bourbon/ar-AA1uitev

Irish_Dem

(59,687 posts)

3. Putin's dream is to destroy US and Europe economically.

Reply to mahatmakanejeeves (Original post)

Wed Nov 20, 2024, 10:48 AM

Nov 20

Make them have much lower standards of living and suffer.

Putin is at war with western democracies and is winning that war.

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