Trump Launches Global Trade War at G7 Summit
The G7 Summit did not end on a a good note, despite what U.S. President Donald Trump may say. The summit in Taormina, Italy, has demonstrated, if any proof were needed, that Europe, Japan, and the United States are operating on different wavelengths. Rather, it’s the U.S. that is detaching itself. But, there’s no evidence that this detachment may necessarily be good for America.
Admittedly, and perhaps motivated by the right sentiment, Donald Trump wants to reset some of the United States’ trade imbalance with other powers. China was clearly one. But Germany has been a major target of Trump’s attention. Throughout the summit, he was trying to secure a bilateral trade deal with Germany, pursuing what would be a rather extravagant relationship. Chancellor Angela Merkel insisted that such a deal was not possible within the context of the European Union: it’s illegal.
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Still, by choosing to resolve the German trade surplus issue by avoiding the proper channels and methods, Trump has wasted an opportunity. (Source: “The Germans Are Bad, Really Bad,’ Donald Trump Tells EU officials,” The Telegraph, May 26, 2017.)
There’s something to be said about a president who wants to pursue a different path to improve the lives of Americans. But, even those who break the rules know they have to learn those same rules before setting out to confront them.
That’s what lawyers do, after all. Instead, Trump’s actions have prompted German Chancellor Angela Merkel to hint that Europe can no longer trust America as a partner. (Source: “Trump Was the Odd Man Out at the G7 summit,” Axios, May 27, 2017.)
Some of the G7 participants found ingenious ways to mask Trump’s apparent bull-in-a-China-shop attitude. EU Commission President Jean-Claude Juncker blamed “translation problems,” feigning misunderstanding Trump’s vision on issues from migration to international trade, and even terrorism.
In essence, Trump encouraged protectionism. Citing his now well-known phrase about Germany—”Look at how many millions of cars they sell in the U.S.” (Source: The Telegraph, op cit.)—Trump wants to return to a world of greater trade barriers while speaking to a group that, Britain aside, has been working towards breaking those barriers for decades.
It’s not the right time for Trump to insist on protectionism. Apart from the fact that America has benefited considerably from fewer trade barriers, any American protectionism would be met by a corresponding one from Europe or anywhere else. That trade protectionism could also lead, as it appears to have done already, to an erosion of confidence in the United States. Thus, other G7 leaders—and other emerging superpowers—will pay ever less attention to what America wants and needs.
There must be a concrete alliance, which is necessary for issues such as security and foreign policy. Trump can certainly review existing agreements and promote changes to better benefit the United States. But to do so effectively, he must operate within a context that does not alienate what are, after all, America’s partners. America cannot go it alone in dealing with Libya and Syria; indeed, it can’t even pursue a new relationship with Vladimir Putin’s Russia.
