Europe’s best tools for countering Trump

NOW that US President Donald Trump has climbed down from his demand to “own” Greenland, an imminent trade war between the US and the European Union has been averted.

But there is little reason to think that the Trump administration will not find more reasons to coerce and antagonise Europe, including with renewed tariff threats. However, contrary to the Trump administration’s narrative, EU leaders have options to push back.

Given that the US and EU have the world’s most robust and important economic relationship, comprising not only high volumes of merchandise trade but also copious exchanges of services and capital, a transatlantic trade war would be very costly for both sides.