Estonian MEP: EU can demonstrate there is no point in US trade war

The European Union has the remarkable ability to show the United States that engaging in a trade war is not in Americans' interest, said former foreign minister and current MEP Sven Mikser (SDE/S&D).
Last week, U.S. President Donald Trump called on global business leaders at the World Economic Forum in Davos to relocate their production to the U.S., warning that otherwise, they would face tariffs.
In an appearance on ETV's foreign affairs show "Välisilm," Mikser explained that Trump has two main goals: reducing the U.S. trade deficit, and bringing industrial sector jobs back to the U.S. Achieving these goals through tariffs, however, could create problems for the U.S. itself.
"Both goals, if pursued through high tariffs, carry the risk of significantly raising prices for American consumers as well," Mikser pointed out, adding that this would undoubtedly be politically painful for Trump.
"And if we look back at Trump's previous term, when tariffs were imposed on several product groups, particularly steel products, the EU and other trading partners responded with tariffs on goods imported from the U.S.," he continued. But the U.S.' potential for escalation, thanks to its trade imbalance, is undoubtedly greater than that of Europe or other partners."
In the MEP's opinion, the EU is capable of reducing its dependence on the U.S. and demonstrating that there is no point in waging a trade war.
"All the moreso because several other U.S. allies may find themselves in a similar situation — such as Canada," he said. "So we have a remarkable ability to make it clear to America, even just through a trial-and-error process, that we're natural allies and partners, and it's not worth engaging in a pointless tug-of-war with one another. The only winners there would be the leaders of totalitarian states and those whose interests are fundamentally very different from ours."
Europe, Mikser highlighted, has the ability to impose tariffs on goods imported from the U.S. in a way that demonstrates to Americans that a trade war is not in their interests.
He cited U.S. tech companies as an example, which have gained significant influence in American politics but may face challenges in the EU due to strict digital market regulations.
"For example, let's consider how the oligarchization of American politics has occurred at a rather alarming clip, where considerable political influence is wielded by major tech giants' leaders, who have very clear business interests that they pursue in symbiosis with the U.S. government but also globally with the U.S. government's support," the Estonian MEP described. "Many such initiatives quickly run up against Europe's digital market regulations. And I believe the U.S. must firmly stand its ground and defend our interests here."
Mikser added that European countries likewise cannot ignore the interests of their own workers, the need to preserve jobs in Europe as well as the need to keep European industry competitive on the global stage.
"We must stand up for these matters, even if doing so is somehow a thorn in the side of or bothers the president of the United States," he affirmed.
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Editor: Merili Nael, Aili Vahtla