- ‘Germany vs the Rest of Europe’ Trump Tariffs to Rupture EU with Backlash Against Merkel
by OLI SMITH, https://www.express.co.uk/
DONALD Trump’s tough tariffs could rupture the European Union’s united front, with one leading currency strategist predicting a scenario where it will be “Germany versus the rest of the EU”.
Europe hit back at the US after President Donald Trump slapped tough tariffs on European steel and aluminium earlier this week. The united front was delivered from European Union’s trade commissioner Cecilia Malmstrom who warned President Trump of retaliation. However, the unity shown in response to the tariffs could quickly change, according to a leading currency strategist.
Jane Foley, a senior currency strategist at Rabobank, predicted that over time the tariffs will start to hurt and the rest of Europe will blame Germany. Ms Foley told Bloomberg: “The trade tariffs have potential ramifications for world growth, not just for this year or next year, but the longer term. “This could become Germany versus the rest of the EU. “If you look at the US Treasury report published last month that pinpointed the currency manipulators, they pinpointed Germany and in particular its trade surpluses.
“They advised Germany to increase domestic demand to get rid of its trade surplus. Trump has an issue with all countries that run a trade surplus with the US.