Trump may provoke "cold trade war" with EU - expert

The US is threatening to introduce new 25% tariffs on a wide range of European goods, which could lead to a new trade war between the transatlantic partners.

This is evidenced by the latest statements of US President Donald Trump and the reaction of European senior officials, writes political scientist Hlib Ostapenko in his article "Trump's tariffs and the new "cold trade war" with EU".

The US President accuses the European Union of "unfair competition" and creating a significant trade deficit for the United States. According to the US government, this deficit is about USD 130 billion, including goods and services.

"We, Europeans, will not allow ourselves to be intimidated," said European Commission President Ursula von der Leyen, adding that the EU is ready for both a constructive dialogue and a tough response to American restrictions.

According to European economists, the introduction of broad American tariffs could cost the EU economy from 0.5% to 1% of GDP. The German car industry, the Italian food industry and the French aviation sector could suffer the most.

Brussels has already prepared a package of mirror measures in response, which could affect iconic American goods. At the same time, the EU is offering compromise solutions, including increasing purchases of American liquefied gas and military equipment.

The situation is reminiscent of the trade conflict of 2018-2019, when the exchange of customs blows led to an increase in prices for consumers on both sides of the Atlantic. Experts warn that a new escalation could have serious consequences for global trade and economic growth.

As previously reported, after Trump's conversation with Trudeau, the US temporarily suspended the introduction of tariffs on goods from Canada.