European Union (EU) negotiators should closely monitor U.S. presidential election polls because if Donald Trump has been shaking up diplomatic habits since 2016, he wants to speed up the pace even further for “another success” for his re-election campaign.
It was therefore at a more political than diplomatic pace that the Trump administration revived trade talks at the Davos Forum.
A year after the signing of the new trade agreement with Mexico and Canada, just a few days after the signing of the phase one trade agreement with China, Donald Trump has a date in mind and it is a rather short date for the conclusion of a new trade agreement between the United States and the EU.
After the plan to overtax 100% of luxury goods like champagne, the U.S. president warned that he would not hesitate to tax European cars by 25% “if we don’t get anything.”
Although he says he is convinced that Europe has no choice but to get along with him, Trump puts France (luxury, cheese) and Germany (automobile) in the same boat while the EU is suffering from a Paris-Berlin tandem not as well coordinated as expected.
Finally, if Donald Trump seems to always seek compromise, he continues his method which he described before in many books, namely to negotiate firmly while keeping the initiative and some ammunition like the compromise sought by French Minister Bruno Le Maire on the “Gafa tax” introduced in July 2019.
Contents published on Cyceon.com do not constitute investment advice.
© Cyceon, unauthorized reproduction prohibited.