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The EU Response to US Trade Tariffs
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The EU Response to US Trade Tariffs

Maria Demertzis and Gustav Fredriksson
Intereconomics – Review of European Economic P..., 2018
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Editorial Rating

8

Qualities

  • Analytical
  • Background
  • For Experts

Recommendation

The United States’ opening volleys in what has the makings of a global trade war forced the European Union to reciprocate to defend itself and to preserve the post-World War II global order, according to scholars Maria Demertzis and Gustav Fredriksson in this bracing report. They argue that, in the final analysis, “trade is not a zero-sum game,” but they advise that the EU should thoughtfully enact its own countermeasures and cultivate its trade partnerships with other nations. Executives and trade experts will benefit from this brief yet probing analysis of the economic consequences of a trade war. 

Take-Aways

  • In 2018, American tariffs provoked retaliatory actions from the European Union, signaling the beginning of what could be a grand-scale trade war. 
  • Trade conflicts are a losing proposition for all parties involved. At risk are the global economy and multilateral system of trade.
  • Restrictions curtail globally integrated supply chains and countries’ efforts to achieve production efficiencies, affecting consumers’ choices and prices. 

About the Authors

Maria Demertzis is an economist and Gustav Fredriksson is a research assistant at Bruegel.

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