Forget the US — Europe Has Successfully Put Tariffs on Itself
15th February 2025
The Financia Times is Britain’s analog to the Wall Street Journal — if the Wall Street Journal were put out by the staff of Mother Jones.
Recent weeks have provided a stark reminder of Europe’s vulnerabilities. The eurozone barely grew at the end of last year, underlining the fragility of the domestic recovery. And the US began imposing tariffs on its major trading partners, with the EU next in its sights. This prospect casts further uncertainty over European growth given the economy’s dependence on foreign demand.
Two major factors have led Europe into this predicament — but they can also lead it out again if it is prepared to undergo radical change.
The first is the EU’s long-standing inability to tackle its supply constraints, especially its high internal barriers and regulatory hurdles. These are far more damaging for growth than any tariffs the US might impose — and their harmful effects are increasing over time.
Reducing tariff and other trade barriers was the foundational purpose of the European Union, just as the foundational purpose of the United States was democracy and individual liberty.
Neither one appears to have survived in a recognizable form.2
Pity.