US new tariffs on EU risks striking match on gunpowder magazine: analyst

The United States new tariffs on imports from the European Union, at this juncture in time when the global economy seems to be very fragile, could exacerbate the already tense trade ties between Washington and the EU, says analyst.

 A senior analyst at Foreign Policy in Focus from New York, Ian Williams, told Press TV’s the Debate on Thursday that “the actions taken by the Trump administration at this particular time, do risk sort of striking a match on a gunpowder magazine.”

The United States announced plans for new tariffs on Wednesday. Under the plan, it will impose tariffs on $7.5 billion worth of European imports in retaliation for illegal EU subsidies to airplane maker Airbus. Agricultural items from Europe will also be subject to the tariffs.

“Because the economy looks very fragile; It’s got all the signs that the bubble is about to burst,” Williams added.

He said that the United States “has never believed in free trade. The United States was the most protectionist economy in the world.”

Asked if US tariffs against the EU act as leverage toward a negotiated outcome, Williams said they could be, “but there are other ways to negotiate” as well.

“Traditionally if you follow the Theodore Roosevelt line, you speak softly and carry a big stick.” he said. The Trump line, however, Williams said, is to “get the big stick and you beat people in the head with it.”

“The point about big sticks is they should be kept in reserve,” he said adding that if they are used, both parties are going to be hurt.

PressTV-US imposing tariffs on $7.5 billion in EU goods

The United States is imposing tariffs on billions of dollars’ worth of aircraft, food products, and other goods being imported from the European Union (EU).

Williams believed that “Trump has gone so far; he has pushed it; it’s unprecedented that the European Union would be sitting together, the European countries, to work out an alternative payments program, to bypass the US.”

“His moves have impelled the US of Chinese currency to move out of the dollar,” he added.

The idea prompted a response from former US diplomat, James Jatras, who was also talking to the program on Press TV.

He said the move prompted many to “suspect its Trump’s secret plan to destroy the American empire. He is doing very well I think.”

Jatras also said that the real solution to the current trade tension is that these countries “negotiate with their partners on the other side and come to a reasonable balance between them rather than sticking to some dogmatic fantasy about free trade, which is maybe good for the financiers and good for the people on the corporate boardrooms, but it’s not good for workers.”

“Unlike previous presidents, President Trump has said ‘look I’m going to stand with American industries, American workers, and slap these tariffs.” he said, adding that “this is his approach. Whether it (will) work or not, I don’t know."

Trump had also initiated a trade war with China, the world's second largest economy. The trade war, which has dragged on for 14 months, has raised the specter of a global recession.

Trade experts and government officials say the escalation runs far deeper than tariffs and could take years to resolve.

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