EU Galvanises Leading World Economies Against Trump’s “America First”
By TruePublica: European Commissioner for Trade Cecilia Malmström is furious and so are some of her counterparts from different parts of the world. Malmstrom openly stated yesterday that the EU was now reaching out to countries such as Mexico, Canada and Japan to forge what will cleary demonstrate is a united front against U.S. President Donald Trump’s aggressive trade policies.
Malmström said in an interview with CNN’s Christiane Amanpour.
“We are determined to do what has to be done, and we are also working with many other countries because this is not only the EU against the U.S.,” “So we are reaching out to other countries in Mexico, Japan, Canada … we are doing trade agreements with a whole lot of countries creating this circle of friends who believe in … international rules.”
Last week, the European Union announced it would impose retaliatory tariffs on up to €2.8 billion-worth of U.S. exports with Canada, Mexico, Japan and India, among others, all confirming they will retaliate as well.
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“This is something that is considered by the rest of the world as not legitimate,” Malmström said when referring to America’s steel and aluminium tariffs. “Europe is doing good. The U.S. is doing good as well, and that’s why we shouldn’t jeopardize this by entering into a trade war,” she said. Then Malmström went one stage further and openly threatened America: “if the U.S. started breaking the rules, we have to take action.”
The World Bank has just made its position clear with a stark warning: “A worldwide escalation of the trade tensions between the US and its major trading partners would have consequences for global trade equivalent to the 2008 financial crisis.”
Under the scenario outlined in its latest global economic prospects report published on Tuesday 5th June, the bank found a broad-based increase in the use of import tariffs worldwide – to the maximum levels permitted by the World Trade Organisation – would trigger a decline in global trade amounting to 9%.
In the meantime, the USA has caused an escalation of tensions between the US and China amid similar threats of protectionism from the White House and a promise of retaliation by Beijing. The effect has been to galvanize leading economies into a joint action plan – and that could soon pull China and even Russia into its sphere of influence, of which, hints have already been forthcoming.
The evidence for that comes directly from a meeting between the EU and Beijing.
The EU Commissioner for Economic Affairs, Pierre Moscovici warned Trump’s protectionism represented a “dangerous nexus.”
The EU and China announced on Friday (1 June) that they would expand trade and investment cooperation amid the global trade dispute triggered by US tariffs.” Wang Yi, state councillor and minister of foreign affairs of China confirmed. “In the context of growing uncertainties in the world, it is even more important for China and the EU to deepen our strategic partnership.”
The World bank has reiterated that “Trade has been an important source of euro area growth, Japanese growth and a lot of emerging market economies are very linked to that growth.”