On Monday, the U.S. and the EU made progress on a trade agreement for which President Trump had laid the groundwork earlier this summer. If the deal goes through, that would be good for both sides of the Atlantic. The ongoing talks are a clear reminder of possibilities when the U.S. and allies work together rather than engage in escalating trade wars.
Some of the things on the table at Monday’s discussion included working toward zero tariffs, zero nontariff barriers and zero subsidies on industrial goods outside the auto sector, as well as the need for a strengthened trans-Atlantic relationship to counter China’s growing dominance. Although no deal will remove tariffs entirely, largely for domestic political reasons, reductions where possible should be lauded.
On a global level, a deal that demonstrates the commitment of the U.S. and EU to free trade and builds relationships between the two sides of the Atlantic is key to challenging China’s attempts to press its political and economic agenda around the world. Standing together, U.S. and the EU can promote and enforce free trade norms while also pushing China toward compliance. That is a far more likely path to success than standing alone or, worse, fighting with one another, making the lure of Chinese investment in developing countries as enticing as it is divisive.
Overall, the talks in Brussels were a great step toward improving U.S.-EU relations and boosting the economies on both sides of the Atlantic. If Trump wants good deals, as the negotiations with the EU look like they may well produce pending further talks, he would do well to leave it to his negotiators rather than resort to Twitter threats toward allies.
After all, a constant sticking point on trade has been Trump’s bullying of allies to get them to the negotiating table. Bullying allies with threatened tariffs that would hurt the economy, when they’d freely talk trade (the EU was working towards a similar deal under Obama), doesn’t help to make deals and only breeds ill will.
Unlike Trump, most leaders don’t need to be told twice that free trade — not tariffs and trade wars — is good.
