Download publication

External Publication

The EU response to US trade tariffs

The authors contributed to the new issue of 'Intereconomics - Review of European Economic Policy' with a paper on the EU's strategy for managing the trade war. The authors argue that to minimise the economic costs of the trade war and protect multilateralism, the EU's best and only response is to retaliate.

By: and Date: October 11, 2018 Topic: Global Economics & Governance

This paper was published in Intereconomics – Review of European Economic Policy, Volume 53, September/October 2018, Number 5 · pp. 260-268.

The first half of 2018 has seen the start of bilateral trade wars with the US. China initially, but also the EU and others are confronted with high import tariffs on selected goods as part of the US administration’s “America First” rhetoric. The authors discuss what it means for the EU to face a threat to a long-established alliance with the US. They argue that not only are trade wars a lose-lose game, but that the EU has no option but to retaliate against US economic aggression. The EU’s best option for damage control is to defend the international multilateral system and maintain open and free trade with the rest of the world.

View comments
Read about event More on this topic

Upcoming Event

Mar
12-13
09:00

India-EU Partnership: New Vistas for the Next Decade

Policymakers, academics and private sector actors from the EU and India come together to work on common issues and explore further areas of cooperation.

Speakers: Suman Bery, Alicia García-Herrero, Georgios Petropoulos, André Sapir and Simone Tagliapietra Topic: Global Economics & Governance Location: India International Centre, Lodhi Gardens, Lodhi Estate, New Delhi, Delhi, India
Read article Download PDF More on this topic More by this author

Working Paper

Zsolt Darvas - Resisting deglobalisation: the case of Europe

Resisting deglobalisation: the case of Europe

Global trade and finance data indicates that the pre-2008 pace of economic globalisation has stalled or even reversed. The European Union has defied this trend, with trade flows and financial claims continuing to grow after the recovery from the 2008 global economic and financial crisis. Immigration, including intra-EU mobility, has also continued to increase.

By: Zsolt Darvas Topic: European Macroeconomics & Governance Date: February 4, 2020
Read article Download PDF More on this topic More by this author

External Publication

From globalization to deglobalization: Zooming into trade

This article shows some evidence of the decrease in merchandise, capital and, to a lesser extent people to people flows.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: February 3, 2020
Read article More on this topic More by this author

Opinion

The US-China trade agreement will not put an end to geopolitical risks

The agreement between the US and China should not be read so positively in Europe, especially in Germany

By: Alicia García-Herrero Topic: Global Economics & Governance Date: January 31, 2020
Read article More on this topic More by this author

Opinion

The WTO is dead: long live the WTO?

Should the EU fight to save the WTO when the US seeks to dismantle it? We argue that the only way for the EU to decide that is to first understand the US’s strategy (as distinct from its tactics) and then make up its mind in terms of how much of a threat it perceives China to be.

By: Maria Demertzis Topic: Global Economics & Governance Date: December 20, 2019
Read article More on this topic

Blog Post

Lessons from the China-US trade truce

The tentatively agreed deal between China and the United States temporarily stops a dangerous dynamic, yet it falls far short of the negotiating objectives of both sides. US trade policy has become a dominion of the executive branch guided principally by the President’s electoral interests. Meanwhile, China demonstrates its capacity to resist pressure: it will enact structural reforms at its own pace in line with its interests. Sadly, the deal confirms that the United States no longer feels obligated to follow WTO rules, and can induce others to do the same.

By: Uri Dadush and Marta Domínguez-Jiménez Topic: Global Economics & Governance Date: December 19, 2019
Read article More on this topic More by this author

Podcast

Podcast

Capture the nodes

How do states exercise power through global economic networks? The multilateral world order is supposed to be harmonious, but by seizing the nodes of production, powerful forces can control access to the global economic system and threaten to lock their rival out. This week, Nicholas Barrett and Guntram Wolff are joined by Henry Farrell, Professor of political science and international affairs at the George Washington University, and Abraham L. Newman, Professor of Government at the Georgetown University, to discuss their theory of weaponised interdependency

By: The Sound of Economics Topic: Global Economics & Governance Date: December 16, 2019
Read article More on this topic More by this author

Podcast

Podcast

Appellate Body Politic

This week, the WTO's Appellate Body, the dispute settlement body, became inoperational: it no longer has the necessary number of judges to render verdicts. What does this mean for international trade and multilateralism? Are we now living in a world without dispute settlement? This week, Guntram Wolff is joined by Alan Beattie, the author of the FT's new Trade Secrets newsletter, and Alicia García-Herrero to discuss the crisis of the Appellate Body.

By: The Sound of Economics Topic: Global Economics & Governance Date: December 12, 2019
Read article More by this author

Opinion

Watch out for China’s currency in case of no-deal scenario

The U.S. and China’s negotiations on a phase-one deal seem to have stalled again. The market was already aware of the limited nature of the likely deal, but was still hoping for it. Against this backdrop, the investors have reacted negatively to the increased likelihood of not reaching a deal on December 15. If this is the case, the U.S. will apply additional tariffs on Chinese imports. The obvious question to address, thus, is, what can happen to China under such a scenario?

By: Alicia García-Herrero Topic: Finance & Financial Regulation Date: December 11, 2019
Read article More on this topic More by this author

Podcast

Podcast

Getting post-Brexit trade deals done

The UK goes to the polls on Thursday to decide who (and if) they want to "get Brexit done". But, as soon as Britain leaves, it will have 11 months to agree a trade deal with the EU. Is it possible? Nicholas Barrett is joined by Maria Demertzis and Niclas Poitiers to discuss post-Brexit trade deals with the EU and the USA.

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: December 10, 2019
Read article More on this topic More by this author

Blog Post

High noon at the Appellate Body

This blog post explains the working method of the dispute settlement body, and then discusses the objections the US has raised against the Appellate Body, and the implications of its potential demise.

By: Niclas Poitiers Topic: Global Economics & Governance Date: December 9, 2019
Read article Download PDF More on this topic

External Publication

Manufacturing employment, international trade, and China

The decline in manufacturing employment is often seen as a major reason for rising inequality, social tensions, and the slump of entire communities. With the rise of national populists and protectionists in recent years, the issue has become even more prominent.

By: Uri Dadush and Abdelaziz Ait Ali Topic: Global Economics & Governance Date: November 28, 2019
Load more posts