Tariff War; Creating a Deep Fault in the Transatlantic Alliance

2025/04/30 | Economy, Note, top news

Strategic Council Online - Opinion: In recent weeks, the United States’ new tariff policies have also affected the goods of traditional American allies in Europe, once again activating the conditions for creating tension in transatlantic relations.

Morteza Makki – European Affairs Expert

In April 2025, the Trump administration, citing vague provisions of the trade law and claiming to protect domestic industries, imposed heavy tariffs on goods imported from Europe. These measures, which include sectors such as automobiles, luxury goods, technology, and food, are reminiscent of the confrontational trade policies of Trump’s first term (2017-2021). Trump described these measures as “a necessary response to structural injustices in trade relations.” Still, analysts see them more than anything as a sign of the return of American unilateralism in international economic relations.

The new US tariffs, averaging 20 to 30 percent, cover a wide range of European exports, mainly targeting Germany, France, Italy, Spain, and the Netherlands. The European Central Bank has warned that the decision could reduce the eurozone’s economic growth by half a percentage point. In addition, European stock markets have also experienced adverse fluctuations following the announcement of these decisions.

The Bruegel Center for Economic Research has warned in a report that this tariff war will disrupt cross-border supply chains and benefit third-party economies such as China.  In response to Trump’s actions, European Commission President Ursula von der Leyen called the decision “in violation of WTO principles, the spirit of Western cooperation, and a political move.” She called for dialogue and warned that the EU would use legal and economic tools to respond if this trend continues.

In this context, the EU Council of Ministers unanimously approved in an extraordinary meeting to impose retaliatory tariffs worth 26 billion euros on American goods, including agricultural products, pickup trucks, and industrial equipment.

“The US tariff policy is not only damaging the European economy but also the cohesion of the Western world,” said Kaia Kallas, the EU’s foreign policy chief. She says, “The transatlantic alliance is based on mutual interests, not economic force.”

“Trump’s approach reflects a geopolitical vision of trade in which economic dependence must become an instrument of domination,” wrote the think tank Chatham House in an analysis of the crisis. According to the center, Europe must review its foreign policy assumptions towards the United States to maintain its strategic independence.

The German Institute for International and Security Affairs (SWP) also wrote in a report: “Europe should not simply react, but should think about strengthening its internal capacity to withstand future shocks.” The center suggests that Europe design an immediate industrial protection mechanism against foreign sanctions and tariffs.

Although Europe and the United States have faced challenges in the past decades, their relations have been based on a strategic alliance within the framework of institutions such as NATO, the WTO, and the Group of Seven. However, recent developments show that this alliance has become more conditional, fragile, and under pressure in the era of Trump’s comeback.

In one of her recent speeches, von der Leyen said: “We cannot build Europe’s future based on political choices in Washington.” This statement reflects a fundamental shift in Europe’s strategic vision: Europe is no longer redefining its role as a subordinate partner, but as an independent power.

What has happened today in the form of tariffs is not just a trade dispute but a symptom of a deeper fault line in the Western world. If Europe fails to respond to this time gap, it will suffer economically and politically, and its global position will be weakened. In the not-too-distant future, Europe seems to have to choose between two options: continuing to depend on an unpredictable partner like the United States, or moving towards strategic independence by relying on its intracontinental capabilities and diversifying its global partners.

Europe | Europe's strategic independence | Morteza Makki | Tariff War | Transatlantic Alliance | USA

https://scfr.ir/en/?p=344110

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