The new trade commissioner of the European Union did not mince any words during his inaugural visit to the White House, saying that tariff threats made by US President Donald Trump are nothing but a "short-sighted electioneering."
According to Phil Hogan, Trump's America First advocacy has paved the way for a "high-pressure moment of crisis" for the global trading infrastructure, and warned him about the far-reaching damage his protectionist approach could create.
During Thursday's conference in Washington, Hogan said that if done in the appropriate manner, the mutual benefits (of Trump's agenda) could be substantial. However, failure to do so will result in a significant damage for everyone involved. Thus, he called on US stakeholders to cooperate with the European Union to foster open trade.
The EU chief is seeking to avert a worsening in international trading relations marred for months by disputes on just about everything -- from airline subsidies to taxes on agricultural products.
Hogan was very vocal about his displeasure on EU's disappointment over the Trump administration's unilateralist stance, stressing it was inspired by the President's motive to be re-elected.
This concept of unilateralism is "short-term thinking", Hogan divulged in a video interview with Global Counsel Chairperson and former European Union Trade Commissioner, Peter Mandelson. Trump, Hogan added, is just concerned about the things going on now and the elections in November.
Hogan also took a jab at the Phase One trade agreement that the US and China signed, stating it reeked of "managed trade" and threatened a complaint to the World Trade Organization.
The Europeans are not very comfortable about China's commitment in the deal to jack up its purchases of US farm and factory goods by around $200 billion in the next two years.
Pulling no punches, Hogan criticized Trump for being "obsessed" with a US deficit in trade with the Asian region and should also consider the services sector, where the country has a $60 billion surplus.
All in all, international commercial trading generates more than $3 billion in profits per day, Hogan emphasized, a figure that he describes as a "fairly healthy relationship" for him. But then he shares his confusion as to why the US needs to impose tariffs on European goods just to make them very costly for the people.
For Hogan, the perception that the European Union poses a security risk for the United States' trade interest is very detrimental to both the Americans and Europeans, one that he so greatly rejects.
