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US President Donald Trump listens to the Prime Minister of India Narendra Modi spoke during a joint press conference in the Eastern House on February 13, 2025 in Washington, Colombia.
Alex Wong | Getty Images | Gets the image
According to former US diplomat Wendy Katler, US President Donald Trump tariffs may push the allies to closer relations with other countries such as China and India.
This happens against the background of the US president’s threat to recover steep tariffs for European alcoholic products after said the European Union It would impose Counteraction to the tariff for 26 billion euros (28.33 billion dollars) USA since April.
BLOC 27-national blocks followed the US duties on all imports of steel and aluminum.
Trump’s trade policy, which appears to be called to balance the economic order in favor of America, include focused tariffs against Canada, Mexico and China.
Speaking with CNBC “A boxed box as Asia“On Thursday, Katler, who previously held the duties of the US Deputy Commerce Representative, noted that traditional US allies, such as the EU, announced” a very ambitious negotiating strategy. “
Catler said: “EU has concluded big deal With the Merkhosar countries. The EU and India are going to restart their negotiations. “
Merkuras is a Spanish abbreviation for the southern common market, a regional trade block consisting of Argentina, Bolivia, Brazil, Paraguay and Uruguay.
I Related negotiations with Mercosur countries In December the political arrangement that Described the Center for Strategic and International Studies As a “iconic transaction” and the only Mercosur with the main trading unit.
CSIS estimated that the transaction eliminates tariffs for more than 90% of bilateral trade, saving European exporters per billion euros annually when providing preferential access to European markets in South America. It adds that this means that “European products will enter its market in much better conditions than in the US or Japan.”
“China can help”
Catler noted that competing powers, such as China, also view other countries, emphasizing that the second largest economy in the world has modernized the free trade agreement with the ASEAN region.
“This makes the top to other countries, and when our partners cannot rely on us. Honor that these other countries, including China, look more attractive.”
Catler is not the only person who believes that Europe may seek elsewhere when the tension between the US and the region grows.
“The reality is that in the broadest sense, Europe should look for alternative markets for the US in China,” David Rosh, a quantum strategy, said CNBC Earlier this month.
Photo illustrations of the euro and dollar banknotes in the Netherlands on July 14, 2022. The US dollar decreased about three weeks low to large peers on Thursday after the chairman of the federal reserve server Jerome Powell laid the concerns of further aggressive tightening of cash.
Nicholas Economy | Nurphoto | Gets the image
“One thing I learned at the negotiating table, you need to respect and trust if you are going to reach a deal,” Katler said.
“If someone at the table and they really feel that they were treated unfairly, it is difficult to make them move, do what you want them to do,” she added.
What can see the world, said Cutler, this is that countries can refer to multilateral trade agreements such as Regional Comprehensive Economic Partnership and A comprehensive and progressive agreement on the Trans-Pacific partnership. The US does not participate in any agreement.
She noted this Hong Kong expressed interest in joining RCEP, And CPTPP has successfully completed the UK’s reception, adding: “I expect other countries to express interest … I don’t think it’s not that the EU even thinks about joining CPTPP. It’s a new world there.”
Chaos policy?
But, as the world’s largest economy, it is difficult to imagine that countries that cut all trade ties with the US
So, one question would be if the country needs to move in trade tensions with the US, as it should do, especially with Trump, which constantly moves positions to tariffs.
Stephen Olson, visiting the senior scholarship at the ISEAS-Yusof ISSOF Institute, said on Tuesday CNBC that Trump “Zig-ZGS” is at tariffs because he believes that holding trading partners on the border, he works for the benefit of America.
Trump “repeatedly said that one of his greatest values is his unpredictability, and he believes that he blooms in chaos situations. Therefore, when everyone else in the world is running and their hair is set on fire, Trump thinks he works in his favor,” said Olsan.
Olson noted that he feels that the US allies are “trying to notice the thread of logic” in Trump’s trade policy. “My advice would be … Don’t interfere,” Olsan said.
Asked how long Trump could maintain the “zig-zaging” position on trade policy, Olson said that the US president did not seek “solid, specific resolutions”.
Instead, Trump probably “wants to trade partners always in the hot seat, and always have this sword that hung over his head.”
The White House press secretary was not immediately available for comments when CNBC appealed.
– Abby Ryanto in CNBC contributed to this report.
