In last weeks session we kicked off an engaging new debate on the EU’s response to new U.S. tariffs, addressing trade policy, economic stability, and transatlantic relations. Delegates weighed retaliation, negotiation, and trade diversification, revealing divisions within the EU on the best response to the current crisis.
Key themes:
1. Trade Strategy
Two main camps quickly emerged with the delegates of Hungary and Italy calling for de-escalation, warning against the risks of a trade war. In contrast, Poland, Denmark, and the Netherlands supported countermeasures, with Spain proposing a 25% export tariff on selected products.
2. Security & Transatlantic Relations
Trade policy was inevitably connected with security policy with Poland and the Netherlands emphasising the importance of maintaining strong ties with the U.S. and acquiescing to President Trump’s demands for increased military spending within NATO. This was however quickly placed under scrutiny by the delegate of Denmark who raised concerns about excessive American influence and the need for greater European independence.
3. Trade Diversification
Trade diversification became a central theme with the Netherlands and Greece advocating for shifting trade towards South America and BRICS nations. However, Hungary strongly opposed moving away from U.S. trade relations, citing geopolitical risks and the countries close connection to the U.S.
4. Ideological Factors
The debate took an unexpected turn with the delegates of Italy, Poland and Hungary stressing shared Christian values with the U.S. and suggested that Europe should move closer to these in order to align itself more with the current presidency. This was harshly rejected by the delegate of Germany, warning against aligning too closely with the U.S. politically and raising comments made by the Vice-President of the U.S. at the Munich Security conference which were in support of right wing ideologies. This debate was tempered by the delegates of Ireland and Spain urgin for a pragmatic approach along economic not ideological lines.
5. Negotiation vs. Retaliation
On the issue of retaliation versus negotiation, three camps emerged: Italy and Germany pushed for diplomatic solutions rather than escalating the situation with new tariffs. Whilst Sweden and Greece called for a calculated and moderate response, balancing economic pressure with strategic patience. And finally France, taking a broader perspective, cautioned against unnecessary conflict and suggested that the U.S. should focus on its trade imbalance with China rather than imposing measures against Europe.
Reflections on the First Session
The debate revealed a split between those favouring firm retaliation and those pushing for diplomatic resolution. Security concerns, trade dependencies, and ideological factors played a major role in shaping national positions. Moving forward, the EU must seek a balanced and unified strategy to navigate this economic challenge.
We are proud of the effort and enthusiasm each delegate showed during the debate and we look forward to seeing their skills and ideas put to the test in the coming weeks.
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