A case for psychologists
Of course, US President Donald Trump's announcement that he will impose a steep tariff on car imports into the USA comes as no real surprise. And yet many things are now different than they were just a few days ago. This is because recent events have considerably dampened hopes that Trump is a „dealmaker“. In other words, someone who only needs to be presented with sufficiently attractive offers to avert tariffs and reach solutions through negotiation.
After Trump's recent disparaging remarks („Europe's parasitism“) and the failure of EU chief negotiator Maroš Šefčovič's efforts, it seems downright illusory that the US president would agree to a simple negotiated solution if the EU promised to buy large quantities of LNG or military equipment, and abolish any EU tariffs on imports from the US. What could ultimately persuade Trump to abandon his errant course, which will significantly damage Europe's economy as well as the US economy, is more unclear than ever. And more a case for psychologists than diplomats.
Decisions soon
In this respect, the EU Commission currently has little choice but to act as it is now acting. On the one hand, to issue indirect threats and rightly wait and see whether further tariffs are announced. After all, the US President is talking about a „day of liberation“ on 2 April. If, as is to be feared, the US government steps up the pace significantly, it is entirely appropriate for the EU to take a tougher stance. EU tariffs on the services of US digital companies should then no longer be taboo.
On the other hand, it is right for the EU to actively endeavour to forge closer trade ties with the rest of the world right now, especially as other economies are also likely to be willing to accelerate the deepening of trade relations. And: the EU should continue to negotiate with the USA - and at best take a short strategic break until mid-April. This may be difficult in view of the limited prospects of compromise and the constant stream of disparaging remarks from the White House. But taking offence is not an option. And for the time being, the USA is too important a trading partner not to try everything possible to resolve the trade dispute.
