What would it take for the EU to sanction Israel.
Real politics. Who would be the new gained allies and who would be the lost allies.
Since ties with USA (biggest funder of Israel) are weakening and we look for new partners, then we can sanction Israel.
All the countries with Muslims will cheer for that. That's for sure.
Okay let's try this on an example. ArcelorMittal in Belgium producing steel and exporting it to USA. Since they put tariffs on us, it will reduce how much we will sell to USA. Lowering demand. Good for Europe as now steel will be cheaper locally. Bad though because lower demand and lower prices will hit the profit margin, causing parts of the factory to be shut down and labourers to be layed off.
What prevents ArcelorMittal from opening a factory in USA to avoid the tariffs?
In general, making these investments takes 3 to 4 years and by then trump administration will be replaced. The short term effects of the trump administration is going to be so catastrophic that the potential gains will only be visible long after trump is gone.
The shock will cause the population to elect someone that will lower tariffs. Most definitely. For better or worse of USA. Only countries like China can do such long term economic shifts because their leadership stays the same for a long period of time.
So, companies in this case will be afraid of moving to USA. Trump is fucking his country up.
I agree, no need for retaliatory tariffs.
But let's say this would be a trade war with China, a stable government.
Different example.
The car industry in Europe Vs the surge of China's electric vehicles.
We could have electric cars for as cheap as 8000 euros. As consumer this would be fantastic.
But the car industry is a gigantic part of our economy. Wouldn't it be better to shift them toward competing with china's industry?
China subsidises their electric vehicles.
What should we do? Accept the Chinese taxpayer's funding of the cars that we consume in Europe?
Is this risky long term? We would start depending on China for car imports. We would lose a key industry in our region. With Russia we learn that we need to be independent in our key industries.
What should we do in this context you think?