Many can agree that things worked just fine between the US and the European Union before President Trump took over the office. Yes, the situation is not ideal for both sides, but it did allow prosperity and stability. A decision to levy tariffs to the Old Continent countries, longtime allies, was characterised by French President Emmanuel Macron as “illegal” and a “mistake.”
Macron told that he opposes the decision of Donald Trump and that he plans to speak with him on this matter. The French president talked about international trade law and stated how this decision is not in accordance with it, reminding that France, Europe, and America are all part of that agreement. With knowing this, he continued by adding that there will be a response from Europe.
One of the results of such decisions is the creation of economic and commercial nationalism. Macron pointed out that this was one of the causes for the World War II saying that “economic nationalism leads to war. This is exactly what happened in the 1930s.”
Not only the Old Continent is worried about Trump’s decisions, it also caused a reaction from World Trade Organization. According to Director-General Roberto Azevedo, this is creating a “very real concern” because of the rising trade tensions with a potential for this matter to be further escalated to a much higher level.
One of the things that were pointed out is the fact that the global trading system “was built to resolve these problems in a way that prevents further escalation.” China and India already put in motion dispute settlement with World Trade Organization, and it seems that European Union will do the same.
If this happens, it will represent the second move that is done to counter Trump’s tariffs. The first one was to prepare $1.6 billion in tariffs that will hit US exports of orange juice, steel, and motorcycles. If World Trade Organization sides with Europe, and it is highly possible for this to happen, it could be just a beginning for even more penalties that could be imposed to various segments of the US industry. One thing to have in mind is that this process can take months to be resolved and in many cases, it goes for years.