Trump Tariff Shock, Europe Turns to Court New Trade Partners in Asia and Latin America

AFP, Brussels, April 12 - Under the shock of US President Trump's tariff storm, the European Union (EU) has begun an offensive charm campaign, turning to court allies in regions such as Asia. It has held one summit after another and launched various trade negotiations.

When Trump announced the destructive "Liberation Day" tariffs on April 2, EU Commission President von der Leyen did not announce the EU's first response at the EU headquarters in Brussels but in Uzbekistan in Central Asia, where she was visiting to strengthen trade ties between the EU and Central Asia.

Although Trump later announced a 90-day suspension of the retaliatory tariffs, most EU goods still face a 10% tariff from the US, and steel, aluminum, and cars are still subject to even higher tariffs. The EU may have to undergo a difficult negotiation process to resolve the current deadlock.

Brussels is doing everything it can to salvage its trade relationship with the United States, worth 1.6 trillion euros, while under Trump's disruptive protectionism. At the same time, it loudly proclaims its efforts to expand trade with other regions.

Von der Leyen stated on the 10th: "Europe continues to focus on diversifying trade partners, working with countries that account for 87% of global trade and share our commitment to maintaining free and open exchanges of goods, services, and ideas."

Experts point out that the EU's efforts to diversify trade partners may encounter some obstacles, including the fact that the US has an unparalleled advantage in terms of market size and demand, making it difficult to find an alternative option in the short term.

Falkman, an analyst at the European Policy Center (EPC), said: "Redesigning trade routes and flows takes time, and cannot be achieved overnight."

The EU is striving to strike a balance between two complex and challenging goals: developing open and free trade while strengthening domestic competitiveness and manufacturing capabilities. However, there is also the issue of market size.

Falkman said: "The EU... will not find another market that provides the level of demand and purchasing power that the US does."

However, against the backdrop of US-China competition, there are signs that EU-China relations may improve.

A spokesperson for the EU said on the 11th that both sides have discussed an alternative solution regarding the EU's imposition of tariffs on Chinese electric vehicles last year.

Source: https://www.toutiao.com/article/1829201349532675/

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