US President Donald Trump as Indian Prime Minister Narendra Modi listens to a joint press conference in the Eastern Chamber of the White House on February 13, 2025 in Washington, DC.
Alex Wong Getty Images News | Gety pictures
The customs tariff from US President Donald Trump can push the allies to formulate closer relations with other countries such as China and India, according to the former American diplomat.
It comes amid the American president’s threat to impose a very descending tariff on European alcohol products, after that The European Union said It will be imposed Anti -definitions on 26 billion euros (28.33 billion dollars) deserves American goods that start in April.
The 27 -countries tariff measures have followed our duties on all imports of steel and aluminum.
Trump’s commercial policies, which appear to be designed to balance the economic system in favor of America, include targeted definitions against Canada, Mexico and China.
Talk to CNBC’sSquawk box asia“On Thursday, Cataller, who previously served as deputy commercial representative of the United States, indicated that traditional American allies, such as the European Union, announced” an ambitious strategy to negotiate. “
“The European Union has concluded A big deal With Mercosur countries. The European Union and India will restart their negotiations. “
Mercosur is the Spanish shortcut to the joint southern market, and it is a regional commercial bloc consisting of Argentina, Bolivia, Brazil, Paraguay and Uruguay.
Trait Recent negotiations with MERCOSUR countries In December, a political agreement on The described strategic and international studies center As a “prominent deal” and the only Mercosur with a major commercial bloc.
CSIS estimated that the deal cancels the definitions of more than 90 % of bilateral trade, providing European exporters 4 billion euros annually while granting South America products to reach European markets. He added that this means that “European products will enter their market under much better conditions than American or Japanese products.”
“China can help”
Cataller said that the competing forces, such as China, wandered in other countries, highlighting that the second largest economy in the world promoted the free trade agreement with the ASEAN region.
“It gives initiatives to other countries, and if our partners cannot rely on us. Guess what? These other countries, including China, look more attractive.”
Cutler is not the only person who suggested that Europe may search elsewhere as tensions between the United States and the region are escalating.
“The truth is, in a broader sense of the word, Europe must search for alternative markets for the United States that China can help.” CNBC said Earlier this month.
Explaining the photography of the euro and the monetary dollar in the US dollar in the Netherlands on July 14, 2022. The US dollar was less than three weeks to their main peers on Thursday after the Federal Reserve Chairman Jerome Powell worried about a merchant dealer continuing to tighten aggressive criticism.
Nicholas Economics Norfuto Gety pictures
“There is something you learned at the negotiating table, you need respect and confidence if you will reach a deal.”
She added: “If someone is on the table and really feels that they are unfairly treated, it is difficult to take them to move and do what you want to do.”
Cataller said what the world might see is that countries may turn into multilateral trade agreements, such as Regional comprehensive economic partnership and A comprehensive and progressive agreement for the Pacific partnership. The United States is not a party to any of the agreement.
I noticed that Hong Kong expressed her interest in joining RCEP, “I expect other countries to express their interest … I don’t think it is in advance that the European Union may consider joining the CPTPP. It is a new world there.”
Chaos policy?
However, as the largest economy in the world, it is difficult to imagine countries that cut off all trade relations with the United States
As such, there will be one question, if the country needs to move in trade tensions with the United States, how should it be done, especially with Trump constantly turning on the positions on the definitions.
Stephen Olson, a great colleague at the ISEASOF ISHAK, CNBC on Tuesday that Trump is “zigzag” on customs tariffs because he believes that by maintaining trade partners on the edge of the abyss, it works for America.
Trump said, “Repeat repeatedly that he believes that one of his greatest origins is the inability to predict it, and he believes that he flourishes in the positions of chaos. So when every one else runs in the world with their hair bulletin, Trump believes this works for him,” Trump said.
Olson indicated that he felt that there was a minimal point in our allies “in an attempt to distinguish the thread of logic” in Trump’s commercial policy. “My advice will be … do not care,” said Olson.
When asked about the period in which Trump might maintain a “zigzag” position on commercial policy, Olson said that the American president was not looking for “tangible solid decisions.”
Instead, Trump is likely to be “looking forward to keeping commercial partners always in the hot seat, and that the Damocles sword is always attached to their heads.”
A White House spokesman was not immediately available for comment when contacting him by CNBC.
– Abby Ryanto from CNBC contributed to this report.
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