The U.S. Milks Europe, Not the Other Way Around

U.S. President Donald Trump's plans for a trade war aren't ostensibly focused on Europe, but Trump himself appears to think they are. He said on Tuesday that "the European Union has been particularly tough on the United States," making it "almost impossible for us to do business with them." Fact-checking Trump on this is pointless, but it's worth pointing out that the U.S. is on the verge of poisoning its favorite well for no obvious reason.

There is talk that Canada and Mexico could be excluded from Trump's planned steel and aluminum tariffs. If that's what happens, the steel tariffs will be the most damaging to Brazil, South Korea and Russia, which contribute 32 percent of U.S. steel imports. Germany, the biggest European exporter to the U.S., accounts for just three percent. The aluminum tariffs will hit Russia, the United Arab Emirates and China. Aluminum production is an energy hog, so Europe, where energy is relatively expensive, is not a major producer. But Europe has complained loudly about Trump's plans and plotted a deliberately insulting response, threatening tariffs on Levi's jeans, Harley Davidson motorcycles, bourbon and now also peanut butter, cranberries and orange juice. "We can also do stupid," European Commission President Jean-Claude Juncker said of the plan.