Europe will be the biggest loser from the tariffs that President Donald Trump intends to impose on the European Union. This is how the economic situation in the European bloc, but with an impact on our country as well, is predicted by former banker Ermanuel Bajra. In the studio of "Diary with Bruna Çifligu", he stated that every transaction with the euro is at risk of tariffs. According to him, the countries of the union will eat each other, because according to him Europe is unprepared and has neither economic nor political leadership.
"The EU countries are in total panic because even Europe's strategy is mediocre, it is unprepared, because it does not function as a single bloc. Europe will be the biggest loser from this and will eat each other, because there is no economic or political leadership in Europe. Every product that transacts with the euro is at risk of tariffs, while in countries like the Czech Republic they will have a smaller effect. Every other country will be subject to tariffs, it could go up to 25% and this will be fatal for Europe. Germany has great difficulties exporting heavy machinery and vehicles because China is a counterweight in this industry. The alternatives should be; a stronger union especially in the capital market, but this is difficult to happen, because Germany has no money, France is in debt."
And according to Bajra, the problem of trade access with China for Europe will be the loss of industrial or academic secrets.
"The problem with China is that Europe and Canada have a lot of trade secrets. There is intellectual property protection and Europe is over-regulated in this regard. If it opens its borders and makes trade deals with China, China will become stronger and Europe will lose industrial, military and academic secrets. The biggest risk for Europe is this. Will Europe sacrifice the intellectual property protection of its industry and academia to go with China? I don't think that will happen. The biggest risk for America is that you will have a China repositioned in Mexico," he emphasized on A2 CNN.
The former banker emphasizes that the hopes are that Trump will fail in this initiative, otherwise the consequences will be painful. On A2 CNN he said that he does not see an optimal quick solution.
"These trade agreements that have happened in the last 20 years will fall and a new architecture will be created initiated by the EU with Canada, Europe, China and Brazil having trading power. But this takes a long time. It will take Europe 5 years to negotiate a state faster. I do not see an optimal quick solution. The hopes are that Trump will fail with this initiative."
Asked whether the tariffs expected to be imposed on the European Union will be felt in Albania, he said that Albanian exporters will face unplanned tariffs from the EU. According to him, it is likely that Albania will have a bilateral agreement with China.
"Not much, as the volume of exports to the US is smaller, but the consequences will come after 6 months and a year when Albanian exporters will face unplanned tariffs from the EU, as the EU must justify the cost of US tariffs with the cost of countries that are not part of the EU. The chances are that Albania will have a bilateral agreement with China."
(A2 Televizion)
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