Blue Jean
The trade balance between the US and the European Union is 50 billion euros in surplus on our side of the Atlantic. The surplus is derived from the trade of goods. On the contrary, the US enjoys surplus in the service market. President Trump imposes 25% duties on car imports. The industries were terrified. The « wood fell » stock markets.
But it was duly celebrated by US car workers. If Trump visits Detroit tomorrow, they will put him on a shield and wander around the city.
Logically Europe will attempt to articulate an answer. But here is an insurmountable technical problem. Europe cannot threaten companies such as Google, Meta, Amazon. It has the ability to increase tax burdens, but this will be very interested in Trump.
Nor is it easy to hit the imports of technology as there are no European substitutes. To put it more simply, there is no flexibility to impose duties, for example, on Apple products as there is no European alternative. Whatever Europe reacts to Trump’s jerk, it is not going to push the American technology giants. And in this field Europe is far behind. In areas such as high technology and artificial intelligence Europe suffocates between the complexes of China and the US. And today he is confronted with what he considered unthinkable a few years ago.
The United States by a historical representative and partner of Europe is turning into an opponent. And as long as they maintain their leadership position in technology and artificial intelligence, they will also maintain the dependency relationship that Europe exists. America still has a paper in its hands. If Europe is in trade war, the US may use Russia as a means of pressure. Where will all this come out? Unknown. We may, the reason says, can go back fifty years back. Waiting for the outstanding fleet to buy any American jeans at a good price. Used, of course.
