No matter who wins the American presidential election next week, European leaders are bracing for a possible shift in trade with the United States. The U.S. and European Union have the largest trade and investment relationship in the world.
A senior European diplomat spoke about the potential change in the bloc’s relationship with the United States, and was quoted by CNBC as saying, “Whoever wins, will be ‘America first.’ The main concern for Americans is the economy and the answer will have to be economic nationalism.”
Republican nominee and former President Donald Trump has spoken often on the campaign trail about the economy and trade. More specifically, he has talked about imposing tariffs on imports, possibly 10% on European goods.
Vice President Kamala Harris has touted the Biden administration’s $369 billion Inflation Reduction Act in 2022 as stimulating the economy. She is expected to stay the course, if elected.
The European Union had previously expressed serious concerns about the Inflation Reduction Act, believing that it was protectionist and breached international trade rules.
German Finance Minister Christian Lindner has sounded the alarm on a possible trade battle with the United States, saying there could be EU retaliation if the United States initiates such a conflict.
