After Donald Trump’s return to the White House, the US has dramatically changed its economic trajectory. One of the latest initiatives of the president was the increase of import duties on cars and auto parts to 25%. The tariff will take effect as early as April, and Washington officially explains its desire to strengthen the domestic auto industry, reduce dependence on foreign imports and create new jobs. The White House also hopes that such measures will encourage global automakers to move production to the United States.
However, the international press doubts the success of this decision. Foreign economic observers are already warning about the risk of trade escalation, the likely increase in the price of cars in the American market and the unpredictable consequences for the global supply chain. European and Asian media directly call Trump’s new tariff policy “a blow to globalization” and a signal of a return to aggressive protectionism. Economists emphasize: instead of the promised revival, the American auto industry may face additional difficulties — from a lack of parts to the reaction of partners in the form of mirror tariffs.
La Tribune – France. Trump is making a logical fallacy, notes economist Natalie Janson in her article for the Paris weekly La Tribune:
“Because the US exports its currency and securities, it has to import goods and services in return. Thus, the US trade deficit is the result not so much of the decline of American industry as of the extreme specialization of the financial sector. .
.. It is very sad that Donald Trump does not understand the following: the trade deficit of the United States is a condition for the United States to become great again. It is this deficit that allows American consumers to purchase a variety of goods and services at favorable prices – and is an inexhaustible source of funding for innovation, which is the key to increased productivity and growth.”
https://www.eurotopics.net/kurz/njt
La Repubblica – Italy. Similar body movements can go sideways in America, – warns the Roman La Repubblica:
“Many experts are skeptical about the results of this move, although Trump believes that success is in his pocket (‘manufacturers are already looking for places to locate production’), and he managed to get investment commitments from some companies. However, this measure threatens to increase prices for the American consumer, who will have to pay several thousand dollars more for a car in the future!
There is also a risk of breaking the complex cross-border production chains, which have been established by manufacturers, including American ones, for years, and because of which today it is difficult to say what a car is “made in the USA”: 60 percent of the components of every car assembled in America come from abroad.”
https://www.eurotopics.net/kurz/nju
Der Standard – Austria. The Viennese Der Standard is expressed:
“This is an exaggeration. And stupidity! In some centuries, all experts are of the same opinion: a tariff war will only harm everyone. … The world is no longer ready to silently observe the blackmail that Trump is fixing – and will not act.
…Investors already prefer to invest their money in Europe. Things are going much worse on Wall Street this year than on European stock exchanges. Among other things, this is due to Trump’s chaotic and inconsistent economic and trade policies. Experts fear a decline in growth rates. Europe, on the other hand, appears much more predictable – not least because many billions of euros are expected to flow into infrastructure and defence. At some point, even Trump’s sharpest swords will be blunted!”.
https://www.eurotopics.net/kurz/njv
Der Spiegel – Germany. The Hamburg weekly Der Spiegel explains how Europe needs to defend itself:
“The Europeans should develop relations with other countries in the Americas, such as Mexico and Canada, against which Washington is also waging a trade war. And Europe should not be intimidated by threats of retaliation from the mouths of a madman in the White House. It would also be important to speed up the current negotiations on other EU trade agreements with MERCOSUR countries in South America, Indonesia and India.
The easier it is for Europeans to channel their goods to the developing markets of the Global South, the easier it will be for them to cope with the decline in exports to the US.”
https://www.eurotopics.net/kurz/njw
El País – Spain. Professor of international relations Ramon Pacheco Pardo explains why China will not take the place of the main trading partner in the pages of Madrid’s El País:
“Chinese consumers prefer to buy local products. … Added to this are the problems of the Chinese economy. The annual growth rate is estimated at five percent, which is a far cry from the ten percent that China could boast of 20 years ago.
… The Chinese government is determined to have Chinese companies stimulate the domestic economy. This has a negative impact on China’s potential investment in Europe.
… China will continue to play an important role for Europe. But it will not be able to replace the United States as a trade and investment partner.”
https://www.eurotopics.net/kurz/njx
De Volkskrant – Netherlands. Europe should not panic, Amsterdam’s De Volkskrant believes:
“Since Trump’s inauguration, the most important economic indicators have collapsed. Therefore, Europe can hope that reality will eventually force a course correction. Trump wants to make the most of American power to make his country as strong as possible. But if more and more countries turn away from the United States economically and politically because of Trump’s unpredictable, autocratic traits, then the power of the United States will shrink like shagreen skin.
Instead of thinking about how to respond to Trump, Europe should focus on its own industries and economies and think about how to make them viable.”
https://www.eurotopics.net/kurz/njy
