Former U.S. diplomat Wendy Cutler suggests that President Trump’s tariffs could lead traditional U.S. allies to seek closer ties with countries like China and India, as the EU plans counter tariffs on U.S. goods and pursues negotiations with Mercosur and India. The EU’s recent agreement with Mercosur eliminates tariffs on over 90% of bilateral trade, benefiting European exporters and granting South American products preferential access to European markets over U.S. and Japanese products. This move signifies a shift in global trade dynamics and could impact the U.S.’ economic relationships with key allies.
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