They say the EU will need to employ some retaliatory measures but has to be careful not to escalate.
AdvertisementEconomists and analysts said that in order to avoid a trade war, policymakers in Europe need to employ a specific playbook to mitigate the economic drag while keeping trade tensions in check.
Kenningham says the EU will likely hit the US with targeted tariffs on certain industries, rather than an across-the-board action.
Related storiesTrade deals to avoid tariffsKenningham said EU policymakers could also negotiate a deal to avoid US tariffs.
Advertisement"There is a possibility that if the strategy toward Europe is very aggressive, Europeans may change attitudes toward the Transatlantic Alliance.
Persons:
Goldman Sachs, Donald Trump, Trump, Joachim Nagel, Emmanuel Macron, Mario Draghi, Andrew Kenningham, Kenningham, Harley, Carlo Bastasin, Bastasin
Organizations:
Biden, Italian, Capital Economics, European Union, EU, Trade, European, Brookings, Trump, Transatlantic Alliance
Locations:
Europe, China, European, EU, Trump's, Ukraine, Germany