What should Europe tax in response to US trade barriers: bourbon or chemicals? 🤔

🗒️ In a new article published in La Tribune, our researchers Oliver Reiter, Michael Landesmann (The Vienna Institute for International Economic Studies (wiiw)), and curran louise (TBS Education) propose a more strategic approach to trade retaliation.

Rather than focusing on symbolic consumer goods with limited economic impact, they recommend targeting intermediate goods sold to industry and little identified by the general public, particularly chemicals, electronics, machine tools, and transport equipment.

🔎 These are sectors in which the EU has the capacity to increase production, thereby limiting disruption for European consumers while exerting real pressure on US exporters.

Their analysis shows that raising tariffs in these sectors could displace billions in trade flows while boosting Europe's production capacity.

This is exactly the kind of strategic, evidence-based thinking we want to bring to the table with #TWINSEEDS.

👉 Read the full article (in French): https://lnkd.in/ePgiQP5Z