US new trade policy triggers global tariff war

The trade war has begun. The Trump administration has imposed tariffs on Canadian and Mexican goods. The European Union has been watching Trump's trade policy closely. A new analysis has found that the EU bloc exports much more to the United States than it imports. President Donald Trump believes that additional tariffs are necessary to strengthen the US economy. Although critics, analysts and researchers say that additional tariffs only increase inflation. Still, Trump is adamant in his belief. The EU does not want a retaliatory tariff war. However, given the situation, it seems that there is no alternative to a tariff war. 

 

Trump's trade policy in his second term is deteriorating global relations. Since Donald Trump took office as president, his 'America First' policy has become the talk of the world in global trade. Under this policy, the Trump administration has started imposing high tariffs on imported goods one after another in order to reduce the US trade deficit. As a result, instability has begun in the world's major economies including Europe, China and Canada.

 

 

Is it possible for the US to prosper by breaking the financial, military and commercial chain with the global system? In the meantime, the EU's statement has come out against the USA's stubborn decision to impose tariffs on 1.3 trillion US dollars. This decision will only cause internal damage to the Trump administration. Trump's trade policy has become a target of incessant attacks.

 

The EU-US relationship has not faced such uncertainty since World War II. The newly elected 47th President of the United States has injected this fear into many relationships around the world. It has confronted European powers with internal challenges. It has shaken the international system. The relationship between the United States and Western Europe has brought the economic and security alliance of that system to the centre. The past US administration has seen Europe avoiding America.

 

 

The EU is overly dependent on US military security and is unwilling to spend money. Donald Trump has brought this issue to the fore and wants to reform it. On the other hand, for the European powers, this is a complex problem that is very difficult to solve. They know very well what they should do. They should increase defence spending to 5 percent of national income. Some countries like Poland and Estonia are already taking this step, fearing a Russian invasion of Ukraine. Although it is economically difficult, the path is clear. But will Trump stand by them in the increased investment of European powers? What will the US role be if a NATO member is attacked?

 

 

 

Donald Trump's intentions regarding Greenland are clear as day at the moment. Greenland, an ice-covered territory, is going to create tension in the EU-USA relationship. Trump's recent expectation is that Greenland should be included in the ownership of the United States. In response to a question from a reporter on Air Force One, Trump firmly said, "I think we're going to get Greenland." The world's largest island is part of Danish territory. Greenland is strategically very important. This island, located in the middle of the Atlantic Ocean, has significant mineral resources. During his first term in office in 2019, US President Donald Trump expressed his desire to buy the island of Greenland.

 

 

He wanted to add it as part of the United States and began negotiations with the Danish government on this matter. However, this proposal was strongly opposed by Denmark and Greenland, which they said was unacceptable. Trump later angrily cancelled the negotiations and respected Greenland's right to independence. Although this did not become a real initiative, Trump's intention was to occupy Greenland. That's where the dispute began. This dispute is not a minor territorial dispute. Denmark is a founding member of NATO and a member of the EU. Trump has not ruled out the possibility of using force or economic coercion.

 

Iran has been another divisive issue with Europe during Trump's first term. Much will depend on what the president's strategy will be. If Trump follows through on his cues and negotiates a deal with Iran, the EU will not be unhappy. European powers should encourage him to move forward on this path. Try to help by offering constructive advice on possible outlines. One of Trump's overt strategies for implementing his ambitions is US influence in Greenland. Reducing this influence may require creative diplomacy. Trump wants to deliver on his protectionist promises. Again, European powers have concerns in the broader geopolitical arena.

 

How America will handle Russia and Ukraine is also important. Above all, global discussions, reviews and in-depth analysis are underway on what strategies the European Union should adopt, learning from the harsh policies of the Trump administration. According to the analysis of international researchers, it is necessary to reduce dependence on the US market and enter new markets in Asia, Latin America and Africa. The European Union has already signed several trade agreements with China.

 

 

These agreements need to be strengthened. Europe needs to increase investment in the digital economy, renewable energy and environmentally friendly industries. European countries need to invest more in research and innovation. It is possible to remain competitive by reducing production costs through innovative technologies. We need to focus on developing trade relations with the United States. The Transatlantic Trade and Investment Partnership (TTIP) agreement must be re-established. We need to gain international support against unfair tariffs in accordance with World Trade Organization (WTO) rules.

 

Trump's trade protectionism has presented Europe with a difficult reality. But it also teaches Europe to be more strategic in the future. Europe can overcome this crisis by exploring new markets, increasing local production, and improving diplomatic relations. By taking timely decisions, the European Union will be able to build a stronger trading position in the future.

 

In the Middle East, Trump has already shaken things up. The ceasefire agreement has crossed the line because of his firm stance with Israel. Donald Trump has ensured that Israel keeps its promises. This commitment is needed not only to calm the situation but also to resolve it. These are the reasons why Europe needs to understand Trump's strategy. The American president is playing all the games and setting the agenda on his terms. That is his prerogative. But if core European interests are to be protected, the continent must come together. And find ways to engage collectively with the White House. Acting unilaterally is unlikely to have much effect.

 

The tariff war is considered the most serious war since the Cold War. Both the USA and the EU are suffering as a result of the tariff war. US farmers and European industrialists are facing financial losses. Trade uncertainty is creating a crisis of confidence among investors. The increase in tariffs is increasing the price of goods, which is directly affecting consumers. This tariff war has created instability in global trade. Both sides need to find a solution through diplomatic negotiations. The WTO can play an important role in resolving this conflict. 

A multilateral trade policy should be developed between the USA and the EU. A moderate trade policy should be formulated by protecting mutual interests. The tariff war between the US trade policy and the European Union is an important test for the modern trading system. The longer the conflict lasts, the more the economies of both will be damaged. If this crisis is not resolved through negotiations, the world economy may face greater challenges. This requires sincere discussions and cooperative trade policies.

The writer is a teacher, Cantonment Board High School, Shahid Salahuddin Cantonment, Ghatail, Tangail