Lorne Cook
APThu, 28 Jun 2018 00:00 UTC

© European Jewish CongressEuropean Council President Donald Tusk
European Council President Donald Tusk says the European Union must prepare for the worst due to the policies of U.S. President Donald Trump, as
a trade war looms between Washington and Brussels.In a pre-summit invitation letter to the leaders of EU countries Wednesday, Tusk wrote that
"trans-Atlantic relations are under immense pressure due to the policies of President Trump."Tusk, who chairs the two-day summit starting Thursday in Brussels, said that
"unfortunately, the divisions go beyond trade. It is my belief that, while hoping for the best, we must be ready to prepare our Union for worst-case scenarios," he wrote.
Earlier this month, Trump imposed tariffs on imports of European steel and aluminum.
The EU responded with "rebalancing measures" that hit around 2.8 billion euros ($3.25 billion) worth of American-made products.Tusk thinks Trump's action on tariffs, which the EU insists is pure protectionism, and pulling out of the Iran nuclear deal - an agreement the Europeans say is vital to their security-
is part of a pattern rather than isolated incidents. Trump is also threatening to introduce tariffs on cars, which could heavily impact Germany.
EU Trade Commissioner Cecilia Malmstrom said that while the EU does have higher tariffs on cars than the U.S. - around 10 percent versus 2 percent - the tariffs only apply to a fraction of the car market, around 15 percent. The U.S. has higher tariffs on trucks and other products, she said.
Malmstrom said the EU cannot lift its car tariffs for the United States or it would have to do so for the rest of the world, and "there's no way" EU member countries would agree to that.
Comment: Trump has a way of shaking up the comfort zone and doing away with complacency. With enough prodding, trade partners will have to rethink their economic structures and evaluate workable solutions. Do they want to? No. Do they have to? Now they do.
Sputnik is reporting that Donald Tusk made an explicit reference to NATO:
Tusk Warns 'Immense Pressure' From Trump May Lead to NATO Collapse - Reports
The European Union should boost its defenses and be able to act independently of the United States, the 28-member bloc's leaders said in a summit statement, released earlier in the day.
During a summit dinner, the president of the European Council laid out his concerns that the "immense pressure" the Trump administration is exerting on the North Atlantic Alliance could lead to its collapse.
"Despite our tireless efforts to keep the unity of the West, transatlantic relations are under immense pressure due to the policies of President Trump," he said.
According to The Times, Tusk called on EU leaders to "go beyond" discussions on US steel and aluminum tariffs and consider a potential break-up of NATO.
[...]
"Europe must take greater responsibility for its own security. The union is therefore taking steps to bolster European defense, by enhancing defense investment, capability development and operational readiness," The Times cited a draft communiqué as reading.
[...]
Comment: Trump has a way of shaking up the comfort zone and doing away with complacency. With enough prodding, trade partners will have to rethink their economic structures and evaluate workable solutions. Do they want to? No. Do they have to? Now they do.
Sputnik is reporting that Donald Tusk made an explicit reference to NATO: