Key Points

• Should the US enter into a phase of trade protectionism, Europe must response as follows: the stronger the isolationist efforts on the part of Washington, the stronger Berlin must pursue its liberalisation efforts.
• Direct punitive tariffs or import quota should not be reciprocated. Protective tariffs should only be imposed as a last resort, exclusively for tactical political reasons, for instance to strategically exert pressure on US Members of Congress in their constituencies.
• The EU’s Directorate General for Trade must be equipped with considerably greater resources. The European Commission should make concerted efforts to revive the dormant negotiations on numerous free trade agreements and push ahead with them.
• Contacts with US federal states must be intensified to try circumventing the extensive presidential powers in matters of trade policy.
• A policy of multilateral, rules-based trade is in Germany’s and Europe’s vital interest. In the event of the US engaging in a protectionist trade policy, the EU should pursue an active course of taking cases to courts of arbitration and help strengthening the WTO.