Paul Krugman: “On Friday Donald Trump, claiming that he was unhappy with European negotiating tactics, announced his intention to impose 50 percent tariffs on goods imported from the European Union. A rate that high would virtually shut down trans-Atlantic trade. But on Sunday, after talking with Ursula von der Leyen, the president of the European Commission, he announced that the tariffs would be postponed until July 9.”
“I have no idea what von der Leyen said, and I’d also note that a huge threatened tariff that may or may not happen in 6 weeks does a lot to increase destructive uncertainty. But let me offer some advice, to the Commission and the EU as a whole: Don’t try to appease Trump. You can’t make any substantive concessions, because your policies toward U.S. exports are already quite favorable. And even giving Trump some kind of symbolic, meaningless win will only embolden him, confirming his false belief that ‘they’ve treated us very badly over the years.’”
“Above all, Europe needs to overcome its learned helplessness and act like the great power it is — especially given America’s apparent determination to destroy the pillars of its own strength.”
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