Overview

• The EU's new tariffs target U.S. goods including whiskey, peanut butter, jeans, and motorcycles, following the Trump administration's 25% tariffs on steel and aluminum imports.
• Cecilia Malmström, former EU Trade Commissioner, warns that trade wars harm both sides, impacting consumers, inflation, jobs, and economic growth.
• The EU's auto industry, already vulnerable due to competition from China and the transition to electric vehicles, faces further strain from potential U.S. auto tariffs.
• The WTO's ability to mediate the dispute is limited, as its appellate body has been non-functional since 2019 due to a U.S. refusal to appoint new judges.
• Experts suggest the current trade tensions could either weaken global trade systems or push for reforms to strengthen WTO rules and cooperation.