The EU, facing Russia’s war with Ukraine, had no risk of fighting a trade war with the US, analysts say
Trade Contract President Donald Trump announced on Sunday that it had not worked out in parts of Europe with European Commission President Ursula von der Leyen.
A French executive said, “It humiliated us.” French Prime Minister François Bailloux described the deal as “submitted.” Economist Olivier Blanchard blows it up as “completely unequal” and a defeat for the EU.
That’s under 30% Trump threatened as the US sets a 15% tariff rate on most EU products, but the tariff rate above 10% that Europe is seeking. The EU has also committed to investing $600 billion in the US, purchasing $700 billion in American energy products and loading them into a “huge amount” of US weapons.
But looking at it from a different perspective, according to Robin Brooks, a senior fellow at the Brookings Institute, the deal is not a defeat.
“Instead, it recognizes the economic and geopolitical realities that the EU needs the US more than other ways,” he said. I wrote it on the Substack Post. “After all, the EU needs US weapons to float in Ukraine’s struggle for survival against Russia. That’s not an environment that escalates trade disputes.”
In fact, Trump has been quite warmed towards Europe’s views on Ukraine, which has fought Russian invasion for over three years.
After expressing deep skepticism about US support for Kyiv, Toned Ukrainian President Voldymi Zelenkiti In the White House, if they temporarily cut off military aid, Trump has helped strengthen Ukraine.
Earlier this month, he vowed to send more Patriot missile defense systems to Ukraine, agreeing to plans for European countries to purchase American weapons before moving them to Ukraine.
Trump also showed that he was tired of Russian President Vladimir Putin’s lack of progress in peace negotiations. And on Monday, Trump took less than two weeks to Moscow.
Meanwhile, Macquarie analysts also show efforts to heal those relationships after previously seeing the US waive its global security obligations.
“In the background, of course, it is also a new commitment to US geopolitical involvement, including Ukraine’s security, Iran’s nuclear assets, and more,” they said in the memo.
Certainly, Europe is also working on raising its own military forces, promising a significant increase in spending, including money for its own defense contractors.
But that takes time, but the NATO forces are already highly dependent and integrated on the American weapons system.
Despite recent transatlantic tensions, there is greater urgency in Europe. The threat of Russia is looming across the continentnot just Ukraine.
In February, the Danish Defense Intelligence Agency assessed the risks from Russia once the Ukrainian war ceased or frozen.
Russia was able to launch a massive attack on Europe within five years, a regional war with a country that crossed the border within six months, a regional war in Baltics within two years, and a massive attack on Europe within five years if the US was not involved. Report from Politics.
“If Russia perceives NATO as militarily weakened or politically divided, it is likely to be more willing to use military force in regional wars against one or more European NATO countries,” the report said. “This is especially true when Russia judges it to fail or not to support European NATO countries in its war with Russia.”