USA - Trump’s decision to stop Germany’s free-riding on trade and security has put an always uneasy French-German relationship into an open-ended and dangerous crisis. President Emmanuel Macron’s desperate attempt to irrevocably anchor the French volatile body politic into the EU has been denied by German opposition to his proposals of re-founding the European project. For now, the euro is safe. Germans want to make sure that remains an unquestionable prospect by putting their man at the helm of the European Central Bank.
US President Donald Trump takes them all on. After China and Japan, it’s now the turn of the mighty European trade block led by Germany and France. He railed during an address last Friday, according to Reuters: 'They have trade barriers. They don’t want our farm products, they don’t want our cars. They send Mercedes-Benzes in here like they’re cookies.' 'They send BMWs here. We hardly tax them at all,' he added, according to the news wire.
On the autos front, that’s for Germany, which is petrified about its car exports to the US, where they now face import duties of only 2.5%, compared with up to 22% for American cars sold in Germany or other EU countries.
And the agricultural warning is for France, which excluded agricultural products from the EU’s negotiating mandate for a limited trade agreement with the US. France and Germany are now going through a very dangerous crisis in their ever precarious relationship, but their leaders are united in denouncing what they perceive as Washington’s unfriendly disposition toward its key European allies.