Summary of The EU Response to US Trade Tariffs

Looking for the article?
We have the summary! Get the key insights in just 5 minutes.

The EU Response to US Trade Tariffs summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Background
  • Analytical
  • 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. 

About the Authors

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

 

Summary

Trade wars are a losing proposition for all parties involved. The back-and-forth of tariff imposition reduces demand, output and the availability of products. Spooked by an increasingly volatile business climate, investors postpone projects and lenders require a higher cost of capital to compensate for increased risk. In 2018, American tariffs provoked retaliatory actions from the European Union, signaling the beginning of what could be a grand-scale trade war. At risk are the global economy and multilateral system of trade.  

Tariffs have far-reaching consequences...


More on this topic

By the same authors

Cryptocurrencies and Monetary Policy
8
Europe in a New World Order
8
“Leaning Against the Wind” and the Timing of Monetary Policy
7

Customers who read this summary also read

Here is what you need to know about the risks of a US trade war
8
US Steel and Aluminium Tariffs
8
Trade War Brewing?
8
The China-U.S Trade War and Future Economic Relations
8
A Weakening Global Expansion
8
Straight Talk on Trade
8

Related Channels

Comment on this summary