1 week Ago
When Tánaiste Simon Harris lands in Washington, saddled with the responsibility of trying to ease the weight of Donald Trump’s tariffs, he is more likely to be thinking it is a subjugation rather than a liberation day. We have come to a strange pass in transatlantic relations when he – or any EU representative – has to play a part in such an undignified tableau. There is something surreal in having to assume the role of supplicant and seek atonement for trade barriers that in reality only actually exist in the mind of the US president.
But needs must. Yet, as Mr Harris noted, there can be no winners in this crisis. Unfortunately, there will probably be even more losers now that China has followed Canada in going down the road of retaliation and resistance.
Neither can be blamed, given the attacks their economies have come under from Washington. European Commission president Ursula von der Leyen had urged Beijing to pursue a negotiated solution. Clearly, for two of the world’s largest markets to be at each other’s throats does not bode well for global stability.
After the announcement that China was to be hit with an additional 50pc on imports, Beijing said it was blackmail. Prime minister Li would not bow to “economic bullying” he said, but the likelihood of growth, jobs and investment all being adversely affected has grown exponentially. The second hammer falls today with another tariff blow to EU goods.
It cannot be about who blinks first – the focus must be on fixing the mess before lasting harm is done . Tanking the world economy serves no one, but taking it out of its tail-spin is primarily the responsibility of Mr Trump. The hardest tumble a man can make is to fall over his own bluff Assessing whether he intends the tariffs to be permanent or merely a mechanism — albeit an incredibly irresponsible one — to exert pressure is speculative.
In the interim, grave harm is being done. China has announced it is prepared for the worst. Beijing was “fully capable of hedging against adverse external influences” Mr Li said, and took the opportunity to hold out a hand to Brussels, adding: “China is willing to strengthen political mutual trust with the EU.
” Whether other countries will hit back, or whether the White House will negotiate deals to lessen the fallout, remains to be seen. The tariff wall threatens to play havoc with complex supply chains, leading to potential shortages. EU trade commissioner Maros Sefcovic said: “Sooner or later we will sit at the negotiation table with the US and find a mutually acceptable compromise.
” We must hope it will be sooner. Should the market gyrations continue, the effects on global business are likely to be grave. According to American writer Ambrose Bierce: “The hardest tumble a man can make is to fall over his own bluff.
” It would be an act of unprecedented economic recklessness were Mr Trump to take the world economy down with him after tripping over his own ill-advised policy..
