If it comes to a stand-off, Europe has leverage over America.
13 March 2025
Europe's most obvious geopolitical asset is the size of its market. The continent’s GDP reaches $24.5trn, almost as big as America’s. US firms, from brewers to banks, would like to continue doing business in that market.
That is the premise of the EU’s retaliatory tariffs, which will fall initially on easily substitutable luxury goods.
That is the premise of the EU’s retaliatory tariffs, which will fall initially on easily substitutable luxury goods.