🗨️ #EU is caught between #TrumpTariffs and #China's #overcapacities.

👉Institut Jacques Delors's @nks.bsky.social

➡️Full show: f24.my/B4CD.x

@en.france24.com #Trump #tariffs

Go Trade Team Status Quo!

But we need to think about the limits of de-risking: With less economic integration, we may have less risk for welfare losses in the case of a hard decoupling scenario, but we may also make that scenario more likely by loosening the brakes for risky political bets.

So yes, let's de-risk to the extent necessary, but let's also not shoot ourselves in the foot with overblown calls for decoupling. (I am looking at you, House Select Committee on the CCP.)

This aligns with the findings of our recent @delorsinstitute.bsky.social report on EU-China interdependence, which show a significantly greater reliance of China on exports to the EU than vice-versa: lnkd.in/eYkJtNVu

Quote: "The cost of a decoupling are always costlier for China and Russia than for any Western country, in the short‐run, in the long‐run, and for both a cold turkey decoupling or a gradual de‐risking."