According to Reuters, the EU is considering retaliatory tariffs against the United States, targeting Harley Davidson motorcycles, Levi jeans, and Kentucky bourbon. Trump has stated that he will respond to retaliatory tariffs in kind. I sympathize with his position.
The EU tariffs target products produced in states or congressional districts that send prominent politicians to Washington. Harley Davidson is located in Speaker Ryan's congressional district. Bourbon is produced in Senate Majority Leader Mitch McConnell state. And Levi jeans are made in Nancy Pelosi's district.
Such tariffs are the product of EU bureaucrats with too much time on their hands. If such tariffs are imposed, the United States should respond. That response, however, should not be economic. The United States should make pursue a policy of linkage.
For example, if retaliatory tariffs are imposed, then the United States should consider decreasing U.S. troops in Europe, shrinking the nuclear umbrella, or withdrawing from NATO. These are just to give you an idea of some options.
The point of linkage is to apply pressure where it's most effective. 34,602 troops are stationed in Germany where they make a significant contribution to the local economy. 12,088 are stationed in Italy. Around 900 are assigned to NATO HQ in Brussels. Selective decreases could serve as a noneconomic shot across the bow.
No comments:
Post a Comment