Adam Posen, president of the Peterson Institute for International Economics in Washington, views the European Union as a major winner of the recent U.S. tariff ruling.
“Trump’s new tariff is only temporary and is limited to a maximum of 150 days; after that he will need Congress” Posen told the “Spiegel”. “Right now the U.S. president has far less leverage to impose new duties, whether the Ukraine situation is involved or not. That makes the situation far more predictable”.
Posen advises the EU to adopt a strategy he calls “slow walking”. “Be passive‑aggressive toward the United States, do not enforce what has already been agreed, but fight politely over many small points” he says. “Stay firm-play the time game”. According to the Harvard‑trained economist, this buys Europe critical months to work constructively on other fronts, such as additional trade agreements or finalizing the Mercosur accord.
He also stresses that Europe should use this pause to attract talent that no longer wants to be in the U.S.-professors, young researchers, and AI developers-as well as capital fleeing the weak dollar and America’s uncertain fiscal status. “If Trump has to appeal to Congress to get his plans through in the future, that presents another opportunity for Europe” he adds.
Last Friday, the U.S. Supreme Court struck down most of the tariffs that Donald Trump had imposed during his second term. In response, the EU put a hold on the ratification of its tariff deal with Washington, while Trump introduced a global 15 % tariff.