Trump thinks that he “free” the United States and its economy with tariffs. The exact opposite could be the case – and in the end of Europe as a winner.
About Donald Trump it is often said that he is a dealmaker, someone who knows how to do good business. Organizations such as the United Nations or the World Trade Organization are just as interested in the international order.
Example world trade: Structures of this kind are contrary to him. Products from Canada, China, the EU like German cars: they are evil. And he wants to free the United States from this evil. He has the will, the presidency gives him the power, the tool is called customs.
However, it could be that he is wrong. Because with the tariffs against many – or even better: against everything – he meets previous trading partners hard, that’s right. Only he will also meet the USA and its citizens, which he is supposed to protect according to the oath of office. The prices will increase there, prosperity will fall – and the selection of goods will be smaller.
An indication: European stocks are required
Europe and Germany will hit the customs and trading conflict escalated by Trump, no question. However, it is not clear whether Europe is weakened by this conflict overall. If the United States is a trading partner, it is time to search for new partnerships and forge alliances: free trade agreements such as Mercosur, Ceta or one with India.
The financial markets provide an indication that old Europe can endure quite well in the end of this trade conflict. Where the future is being traded, you have been seen upgrading for some time. European stocks are in demand while the US indices are weakening. This is mainly due to Donald Trump’s account. Dealmaker – well and good. But whether the dealmaker is also farsighted is not known.
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