The geopolitics of tariffs never rest, and the news brings us two developments. The first is positive: the ratification of the free trade agreement with Mercosur opens up South America to more prolific relations with the European Union. Cotance, the association representing national tanning associations in Brussels, rejoices. But tensions surrounding Greenland are prompting US President Donald Trump (in photo) to call into question the agreement signed with the EU in the summer, with the EU threatening retaliatory tariffs.
Mercosur opens up South America
“Once the agreement has been signed, all that remains is ratification by the European Parliament”, reads Cotance’s statement. “We hope this will be swift. After 25 years of negotiations, we can see the finish line: we cannot wait any longer”. The gradual removal of tariff barriers between the EU and Mercosur, an area that encompasses “800 million people and 30% of global GDP” (according to La Stampa), opens up interesting prospects for the fashion industry. Both for the supply of raw materials and the export of finished products.
Meanwhile, Trump
At the World Economic Forum in Davos (January 19-23), Tensions surrounding Greenland will be discussed at length among European chancelleries and in Strasbourg. Trump claims Greenland for the United States even as Denmark wants to maintain sovereignty. The tensions have reignited the trade war that was believed to have been dormant since the summer with the 15% tariff agreements. The US president has announced new 10% tariffs from February 1 against countries that have sent troops to the island and are therefore hostile to his plans. These countries affected, in addition to the United Kingdom, which is no longer in the EU, are Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland. While Trump threatens to raise tariffs to 25% if European countries do not return to more docile conditions, the EU is considering its response: the orientation is to react strongly in the field of tariffs.
Read also:
