Analysis: The US is ‘Brexiting from the world’, says one diplomat – as EU prepares response
By Adam Parsons, Europe correspondent
There will be a response from the European Union – the question is how soon, and how tough.
A symbolic reprisal is one choice – putting tariffs on classic American products such as Harley-Davidson motorbikes or bottles of bourbon.
That won’t damage the European economy, but it won’t make much of a difference either.
There’s a reluctance to slap wide-ranging, indiscriminate tariffs simply because that would increase costs for many European manufacturers.
So something more targeted may look appealing and that could mean going after the tech giants – Facebook, Apple, Google, Amazon, for example.
Companies who have already had rows with EU regulators and are seen as being, to varying extents, close to the White House. If Europe could specifically target Tesla, it probably would.
There are also those suggesting the EU should hold fire for the moment, confident that Trump’s tariffs will backfire and keen that the effects are visible.
One fear is that some of the cheap goods that were destined for US markets will now be diverted to Europe, flooding its market.
Another fear is how the Windsor Framework will be affected, now that there are different US tariffs on either side of the Irish border.
And, finally, there is that insult from the president, who called the European Union “pathetic”.
A few minutes later, a senior EU diplomat sent me a message saying “the US is Brexiting the world, but you can’t stop the march of folly”.
Transatlantic relations are getting even icier.
