Le Monde cites Donald Trump: “Look, let’s be honest, the European Union was formed in order to screw the United States,” Trump said. Asked if he had made a decision on tariff levels for the bloc, Trump added: “We’ll be announcing it very soon and it’ll be 25%, generally speaking.” Canada and Mexico will see the same tariffs applied till April. There will be further tariffs on car imports. UK steel imports to the US face also a 25% tariff. With production costs rising all over the EU and in the UK, because of higher taxes, higher energy prices, higher social contribution, the additional 25 % tariff will make EU/UK products much less competitive in the US. This will be a disastrous hit for the already suffering EU industry. The EU may have to adjust on many levels to play with the US again. It is strongly advised not to start a trade war with the US – which the EU cannot win. Instead, the EU must lower production costs by all means: lower taxes, reduced burocracy and EU rule, lower energy prices, industrial perspectives without climate restrictions, stability and trust in governments.
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