Trade War: US and Europe at a crossroads

U.S. president Donald Trump has sparked another wave of controversy surrounding his trade policy towards Europe. During the briefing on board the Air Force 1 aircraft, Trump stated that he would not engage in trade talks with Europe unless it introduced compensation for alleged losses that America suffered as a consequence of trade with the European continent.

Trump did not explain what he meant, but suggested that Europe had "taken quite a few money distant from America" and that the United States could not lose $1.9 trillion in trade. The president of the United States stressed that while European leaders “come to the table” and want to talk, “there will be no talks until they pay us large money all year, first for the present and besides for the past.”

The trade war between the US and Europe has been going on for respective years and has had many negative effects on the economies of both parties. According to the Organization for Cooperation and economical improvement (OECD), the trade war could have fallen by 0.2% global economical growth in 2020.

Trump stressed that the United States cannot at the same time spend much money on NATO to defend European nations, and lose money on trade. The president of the United States said, “The full thing is crazy, and I was chosen on that basis.” He added that "Americans realize this much better than the media, but the media realize it".

The trade war between the US and China is besides 1 of Trump's main trade policy themes. The U.S. president said that "we are losing hundreds of billions of dollars a year to China" and that "if we don't solve this problem, I don't intend to make a deal." Trump added that "China is now suffering dense losses due to the fact that everyone knows we're right".

According to planet Bank data, trade between the US and China was $660 billion in 2020, accounting for about 15% of the full abroad trade of the US.

It is worth noting that Trumpaspot's trade policy is confronted with criticism from many experts and politicians. national Reserve president Jerome Powell said that “trade policy may have a negative impact on the economy” and that “it is crucial to find solutions that will benefit both parties”.

Consequently, the trade war between the US and Europe and China is expected to continue, which could have serious consequences for the economies of both parties and the planet as a whole.