The big question: What does Trump’s tariff appeal mean?
US President Donald Trump’s tariff is suspended for 90 days, but as the deadline approaches, will Europe and the United States reach an agreement?
In addition, if they do not do and resume definitions, what does this mean for both the European and American economy?
“It is simply the largest and integrated economic association in the world.”
In fact, the value of this relationship is 8 billion euros, which is equivalent to the common size of French and German economies, and represents a third of the global GDP.
In this episode of “The Big You Question”, the business editor at “EURONEWS” Angela Barnes sat with Malte to talk about what it might mean re -introducing definitions and their hopes in future economic relations.
Why is the economic relationship between the European Union and the United States very important?
The economic relationship of 8 billion euros consists of several parts. 1.7 billion euros corresponds to the flow of goods, and is often seen as the most important component of the ratio. A smaller percentage of service services: financial, accounting, legal, tourism and digital services.
Foreign direct investment (FDI) also plays an important role in the relationship.
“We are both the largest source of foreign direct investment, more than 56 % of the American foreign investment go to Europe, a similar measure of European direct foreign investment goes to the United States.”
“But the most important part of the economic relationship, with a great difference, is the sales of European subsidiaries in the United States and the American branches in Europe.
“Therefore, when we talk about the 8 billion euros of Atlantic relationship, most of this value is simply created a sale through our subsidiaries on the other side of the Atlantic Ocean.”
Although Germany, Ireland and Italy are the largest European sources of the United States, Malati indicates that the impact of the customs tariff resumption can be observed, especially in the most translated industrial centers throughout the bloc.
“You just have to look at the ecosystems created in different parts of Europe with American investment and companies that work there.
For example, we have a very strong ecosystem around the pharmaceutical sector, here, to southern Brussels, in Belgium, and another, of course, in Ireland, which many people also know. We have an ecosystem for the space sector in southern France.
So we have this type of group group that also attracts local universities and supply chains that are used in the same place, which benefit from the competitive advantage of different parts of Europe in the most effective way. “
What will the commercial definitions of European competitiveness mean?
At this time, uncertainty about the future of definitions caused huge damage to European innovation and economy. Malati is also afraid that the warfare war and counter measures will extend to other areas of the relationship.
propaganda“When large investments of billions of euros are planned in the supply chain, in manufacturing facilities, the profitability of these investments cannot be calculated, because this account changes from day to day with a tariff or counter that was imposed and removed again,” Malati explained. “
“This creates the huge stalemate in the market, where investments and other parts of the world are stopped, which do not face this level of uncertainty, so they can accelerate their innovation and investments, while we will have to catch up with.”
He also added that the interruption of supply chains can cause an increase in consumer prices.
What is the future of economic relations between the European Union and the United States?
“This is the question of a million dollars,” Malati said, “The big question.”
propaganda“At least, what we can say at this time is that there is room for dialogue. Now, if this dialogue is, in the short term, in the short term, to reach a conclusion, he is still about to see it.”
Malati added that he wants to do so, outside a 90 -day break, which will be discussed in the long run, how the two parties can cooperate to generate long -term mutual benefits.
“There is a lot at the stake in this relationship to allow her to damage,” said Malati.
He adds that he also wishes to give the European Union priority to progress in the Capital Markets Union to help him “take over his long -term growth and competitiveness”.
propaganda‘The big questionIt is a program from “Euronews Business” in which we talk to the leaders and experts in this sector to talk about some of the most important current panorama topics.
Look at the above video, the full discussion with the United States Chamber of Commerce against the European Union.
