Donald Trump calls Europeans “freeloaders” who have relied on the US to pay for defence while conspiring to “screw over” America by creating the EU.
The Trump administration continues, for example, to misunderstand EU food rules forbidding the import of chlorinated chicken.
“The West as we knew it no longer exists”
European Commission president Ursula von der Leyen made this statement following the announcement of US tariffs and the breaking of the Western alliance supporting Ukraine.
In his first 100 days, the breaking of alliances that maintained the post-war order but, according to his own beliefs, disadvantaged the US, has characterised US foreign policy.
Vice President JD Vance’s hostility to European leaders was demonstrated when he called them ideological tyrants and accused them of running in fear from their own voters. Elon Musk has appeared to show sympathy for far-right movements such as Germany’s AfD.
“Nobody knows what is coming next”
Trump’s volatile trade strategy risks recession with businesses of all sizes confused, unable to hold on to what they perceive as a moving target.
“These tariffs are an answer in search of a question,” said John Cochrane, an economist at the Hoover Institution at Stanford University.
Cochrane and other economists cannot see how tariffs will lure manufacturers to set up factories in the US while enabling the US to tax the rest of the world rather than its own citizens. They do not understand how tariffs will encourage countries to strike new deals with the US and eliminate the US trade deficit: the difference between what the US imports and exports.
“Trump’s right-wing approach is failing”
The number of tourists visiting the US dropped by nearly 12% in March. High-profile deportations and detentions are making potential visitors nervous about holidaying in the US. In 2023 international visitors spent $155 billion on travel and tourism to the US.
Interestingly, Trump’s first 100 days have coincided with right-wing failures across the world, Canada being the latest example. The same is happening in Australia and is expected to happen in Singapore as trade wars undermine right-wing rhetoric.
While the Labour government pursues a more conciliatory approach with the US administration, it risks being perceived as weak. The obvious opportunities in pursuing closer trade relationships with the EU are being obscured by the ghost of Brexit and indecision.
Meanwhile China is retaliating hard. Returning Boeing aircraft and cancelling US pork orders show that China is willing to take advantage of the opportunities that a destabilised world economy offers. No matter how hard Trump tries, he is not going to be able to manufacture iPhones in the US.
