In this special edition of Current Accounts, the Hinrich Foundation’s podcast on global trade, the US Association of Foreign Press Correspondents sits down with Senior Research Fellow Keith Rockwell to discuss how Europe plans to deal with Trump and the impact on the world’s most important alliance.  

On 10 February, Donald Trump announced a 25% tariff on aluminum and steel imports, followed days later by a plan for "reciprocal tariffs." As promised during his campaign, he plans to expand his tariff blanket further. Europe's longstanding alliance with the US is in crisis. While European leaders claim they are better prepared for Trump’s second term, the reality is they are in a far weaker position than in his first.

With a major war on its eastern border, crushing energy costs, and political turmoil roiling the union’s anchor members Germany and France, stability across the continent is at risk as Trump forges ahead without the EU to cut a deal with Russia President Vladimir Putin.  

Tune into this special podcast as Senior Research Fellow Keith Rockwell sits down the Association of Foreign Press Correspondents-USA to probe Europe’s strategy and the potential impact of Trump’s tariffs on the most important alliance in the world. 

Rockwell’s recent research for the Hinrich Foundation explores Europe’s two-pronged approach to deal with Trump and his tariffs. The European Commission is preparing both carrots and sticks, seeking to strike trade deals or retaliate forcefully if necessary. Even as European leaders weigh retaliation against the US on LNG imports, investment in US manufacturing, and military purchases, many in Europe believe negotiation is the best path forward, aiming to avoid a tit-for-tat trade war by increasing imports from the US rather than facing broad restrictions on EU exports. There is a lot to lose on both sides of the Atlantic. 

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Tune into the Hinrich Foundation’s podcast series for insights on international trade.