EU WILL LOSE: Brussels ‘on a hiding to nothing’ in trade war with Trump, expert warns
THE EU’s bid to spark a trade war by Donald Trump by introducing tariffs on US goods will backfire, experts have warned.
European Union officials imposed duties on American goods worth £2.4bn (€2.8bn) today, including bourbon whiskey and motorbikes.
The levies are in retaliation to US president Mr Trump who imposed tariffs on steel and aluminium imported from the EU.
But a financial expert said Brussels’ tit-for-tat response would fail to persuade Washington to change its aggressive economic stance.
Jonathan Davis, owner of a wealth management firm, said the EU was “on a hiding to nothing” by clashing with Mr Trump.
He told Sputnik: “The EU can do whatever it wants, it is a superstate with unelected bureaucrats.
“But then you get to the real business of trying to be prosperous.
“Germany‘s leading car manufacturers have called on the EU to scrap its import tariffs on US cars.
“The businessmen realise that the EU are on a hiding to nothing.
“Donald Trump is saying that we’ve had enough of nonsense – either take it or don’t. If you do take it, we’ll all be more prosperous.
“The EU, Canada, Mexico, China, you name it, have had tariffs forever.
“All Trump is doing is readdressing the balance and fulfilling his campaign promises.”
European Commission president Jean-Claude Juncker yesterday hit out at Mr Trump’s tariffs on European steel and aluminium.
Speaking in Ireland, he said: “The trade that we believe in is built on rules, trust and reliable partnership.
“The United States‘ decision to impose tariffs on Europe goes against that. In fact, it goes against all logic and history.
“Our response must be clear but measured. We will do what we have to do to rebalance and safeguard the EU.”
And the EU’s trade chief Cecilia Malmstrom said she was “very worried” the row with Mr Trump could trigger a “full trade war”.
She said: “The recent US moves imposing tariffs on steel and aluminium are an illegal move, and threaten to destabilise the WTO.
“Also, it is frankly ridiculous that EU steel is considered a threat to US national security.
“As longstanding allies of the US we were disappointed, but not surprised.
“We did everything we could to avoid this situation, but now we have no choice but to respond.
“The EU has a responsibility to stand up for open global trade. Our response will have to be proportionate, reasonable and intelligent.”