E.U. Slaps Tariffs on Americana
The E.U. has responded to President Trump’s recently announced high new blanket tariffs on aluminum and steel, at 10% and 25% respectively, which have alarmed much of the world, as the U.S. is its largest steel importer. The United States imports the majority of its steel from the E.U., its largest trading partner overall, leaving Brussels with the most to lose. While the tariffs have yet to go into effect, European Union leaders responded this past week with outrage and potential countermeasures starting with a retaliatory 25% tax on certain American imports.
One of the union’s largest worries is that the tariffs on steel and aluminum exports to the U.S. would flood Europe with cheap steel, hurting their own market further. Additionally, European Union commissioner for trade Cecilia Malmstrom has expressed concerns that the tariffs would cost thousands of European jobs, and outlined three ways Brussels could react. First it could impose tariffs on American goods in direct response. The Union has already promised to slap a 25% tariff on American imports, choosing products from key Republican districts for an extra fuck-you sting and to draw ire from Trump’s base towards his trade policies. Goods on the list include Harley Davidson motorcycles, bourbon, oranges, Levi’s, cranberries, bed linens, agricultural goods, and others totaling around $3.5 billion in imports.
The proposed E.U. tariffs on only $3. billion seem monetarily insignificant compared to Trump’s (the E.U. imported around $308 billion American goods in 2016). However, the proposed tariffs on seemingly trivial goods (who buys a Harley or Levi’s regularly? If at all?) aren’t intended to have broad economic effects on the United States, or even the Congressional districts the brands are based in. Rather, E.U. leaders chose the goods potentially taxed based on the political message it would send to Trump’s base. Levi’s and Harley Davidson are synonymous with the kind of “MAGA” Americana image that Trump’s base clings to, and generate media headlines that his supporters will pick up on.
By targeting brands that Trump supporters recognize as quintessentially Americana, E.U. leaders are hoping the message that Trump’s actions are hurting them reaches his supporters not only in those districts but across the country. Additionally, by selecting products that are headquartered in the districts of powerful congressional politicians (Harley Davidson is head quartered in Paul Ryan’s, Levi’s in Nancy Pelosi’s, and bourbon makers in Mitch McConnell’s), European leaders intend the screams made here to be the loudest.
The E.U. seems hesitant to impose these measures but confused as to how they should react otherwise, however if they so choose the measures could be enacted at any moment, and do not have to go through WTO formalities. Trade wars are not common in the twenty first century, especially between Western allies, which is something of an understatement. European Union Commissioner Jean Claude Juncker referred to them as “stupid,” and Trump’s very own Paul Ryan can’t even stomach the idea. The new European tariffs haven’t gone into effect, and most likely won’t hurt the average American consumer anytime soon. But trade wars can spiral as quickly as Trump, and while nothing is set in stone yet, the world’s 3rd largest economy already seems extremely frightened and pissed.
