Expert about Trump's customs threat: EU cannot sit still

US President Donald Trump has announced that US will introduce penalties of 25 percent on products from the EU.

According to Pia Fromlet, euro economist at SEB, the EU is well prepared for Trump's protectionist policy.

« I think they have prepared, and they have probably done so for a while, on Trump's return as president and that he would pursue this protectionist policy, » she says.

EU has in previous statements Promised an « definite » response to any penalties, but Pia Fromlet believes that the Union will currently wait for any counterpart.

– I do not think that you act until you have actually decided and signed that customs will be introduced. And to start with, you might negotiate a little more with the United States.

In such a negotiation, for example, the EU can offer to buy more energy, especially natural gas, from the United States in exchange for general, broad tariffs not being introduced.

Pia Fromlet says That it is not certain that the EU acts against the United States if Donald Trump would introduce specific tariffs, for example on certain types of products. Possibly a response could then be tariffs on US import of symbolic goods such as Harley Davidson motorcycles or the American liquor Bourbon, which was previously done,

– But if he goes ahead and still says that he would impose general customs duties of 25 percent then I do not think the EU can sit passive, then you will probably act back. Then the EU will not sit still but then it will be customs and then the risk of a global trade war has increased.

Finance Minister Elisabeth Svantesson (M) is currently at the G-20 meeting in Cape Town in South Africa. She says the issue of US threat of customs duties is one of the issues that dominates the discussions at the meeting.

– It remains now to see what this leads to, but regardless, it creates a huge uncertainty in many countries that allow companies to hold back investment, says Elisabeth Svantesson.

However, she does not see any uncertainty about whether the EU should act.

– Of course, the EU should answer and do it in common, says Svantesson.

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