Trump tariffs can push American colleagues to countries like China, India

Tariff of US President Donald Trump, according to former US diplomat Wendy Cutler, pushed colleagues to have close relations with other countries like China and India.

Amidst the threat of the US President to levy the tariffs standing on European alcohol products, the European Union stated that it would impose counter tariffs on US goods of 26 billion euros ($ 28.33 billion) starting in April.

27-Tariff Measures of Nation Block performed American duties on all steel and aluminum imports.

Trump’s trade policies, designed to regenerate the economic system in favor of the US, include tariffs targeted against Canada, Mexico and China.

Speaking to the CNBC’s “Squalk Box Asia” on Thursday, the cutler, who previously served as acting sub -commercial trade representative, reported that traditional American colleagues, such as the European Union, announced “a very ambitious interaction strategy”.

Katler said, “The European Union has made a big talk with the Mercosur countries. The European Union and India are going to resume their dialogue.”

Mercosur is a Spanish abbreviation for the Southern Common Market, a regional trade block made of Argentina, Bolivia, Brazil, Paraguay and Uruguay.

The European Union finalized dialogue with the Mercosur countries in December, a political agreement that the Center for Strategic and International Studies was described as the “Landmark Deal” and only a Mercosur is with a major trading block.

CSIS estimated that the deal eliminates tariffs on more than 90% bilateral trade, saving European exporters 4 billion euros by providing preference access to European markets annually in European markets. It states that it means “European products will enter their market in better circumstances than us or Japanese products.”

Cutle said that competitive powers, such as China, also attracts other countries, Katler said, the second largest economy in the world has upgraded its free-trade agreement with the ASEAN region.

“It is moving forward to other countries, and if our partners cannot trust us. It seems whether these other countries including China seem more attractive.”

Cutler is not the only person who suggests that Europe can see elsewhere because the tension between the US and the region increases.

Quantum Strategy Strategist David Rosh told CNBC earlier this month, “The reality is that in the broad sense of the word, Europe has to look for alternative markets for American China.”

Katla said, “One thing I have learned on the conversation table, you need to respect and believe if you are going to reach a deal,” said Katler.

“If someone is on the table and they really feel that they have been treated incorrectly, then it is difficult to move them, what you want to do, to do,” he said.

What the world can see, Katler said, it is that countries can move to multilateral trade agreements, such as a comprehensive and progressive agreement for regional comprehensive economic partnership and trans-pacific partnership. America is not a party for either agreement.

He said that Hong Kong has expressed interest in joining RCEP, and CPTPP has successfully terminated the UK entry, saying: “I hope to express interest in other countries … I don’t think it is out of the question that perhaps the European Union is also thinking about joining CPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

But, as the world’s largest economy, it is difficult to imagine all business relations with America to imagine cutting countries

For example, a question would be, if a country needs to navigate trade stress with America, how should it do, especially changing the constant stance on tariffs with Trump.

Stephen Olson, while visiting a senior partner at the ASES-Urusof Ishaq Institute, said on Tuesday that “Zig-Zigs” on Trump Tariff because he believes that it works in favor of America, keeping the trade partner on the age.

Trump repeatedly said that he feels that one of his greatest wealth is his unpredictable, and he feels that he thrives in anarchy situations. So when all the rest of the world in the world are running around on fire, Trump thinks that he works for his benefit, “Olson said.

Olson indicated that he felt that in Trump’s business policy, American colleagues “were trying to understand a thread of logic”. “My advice would be … don’t bother,” said Olson.

Asked how long Trump could maintain a stance of “zig-zaging” on business policy, Olson said that the US President is not looking for “solid, solid resolutions”.

Instead, Trump is likely to “always keep business partners on the hot seat, and always there is a sword of democls hanging on their heads.”

The White House spokesperson was not immediately available to comment on contact by CNBC.

– Abbie Ryanto of CNBC contributed to this report.