Director’s Cut: A global trade triumvirate?
In this week’s Director’s Cut of ‘The Sound of Economics’ podcast, Bruegel director Guntram Wolff hosts a discussion with Bruegel fellows Alicia García-Herrero and André Sapir on where Europe will position itself between the two major trading powers of China and the United States if relations continue to cool.
Bruegel director Guntram Wolff begins his regular Director’s Cut of ‘The Sound of Economics’ podcast with a broad assessment of the recent fomentation of global trade tension, joined in conversation by Bruegel fellows Alicia García-Herrero and André Sapir.
Amid escalating trade tensions, Europe is still working out where it stands between China and the United States. Reprieved – for now at least – of inclusion in the US tariff on steel and aluminium imports, the EU remains regretful of the prospect of global trade war.
China, and Asia more broadly, faces a range of difficulties in the event of a tariff tit-for-tat. Some countries will have to choose where they align themselves; other countries will not have the option to choose.
For a more in-depth look at global trade balances, consider Nicolas Moës recent Bruegel blog post data on bilateral trade, services, investment and protectionism between Asia, Europe and the US in recent years.
Meanwhile, Francesco Chiacchio has written another blog post identifying which sectors would be most vulnerable to any deterioration in relations between the EU and the US.