Europe Faces Trade Reckoning as Climate Costs Demand Tariff Shift
Brussels - Europe stands at a critical juncture,compelled to reassess its commitment to free trade in the face of escalating climate costs and the disruptive policies of former U.S. President Donald Trump, experts warn. A failure to fundamentally rethink trade rules could trigger widespread social and industrial upheaval, alongside accelerating planetary damage.
The current approach to tariffs, exemplified by Trump’s often unpredictable and nationally-focused strategies centered on bilateral trade surpluses, is insufficient. A new framework prioritizing worldwide and predictable principles is urgently needed.
A key driver of this shift is the previously underestimated environmental impact of international freight. Currently accounting for 7% of global emissions, the true cost of this pollution has been substantially undervalued.For years, economists have operated with a carbon metric ton valuation between €100 and €200. Though, the intensifying effects of global warming necessitate a dramatic reassessment.
Current estimates now place the costs associated with these emissions – including natural disasters and economic decline – at approximately €1,000 per ton, potentially even higher, excluding intangible losses like diminished well-being. To adequately address this environmental burden,average tariffs of around 15% would need to be applied to global trade flows,with adjustments based on the specific goods being transported.
