The Daily Signal - Victor Davis Hanson: Europe, You Can’t Sit on the Sidelines Anymore

Episode Date: April 17, 2025

Which side will Europe take in a China-U.S. trade war? Of all the scenarios facing Europe right now vis-à-vis their relationship United States and China, their best option would be to side with the U.S., argues Victor Davis Hanson on today’s “Victor Davis Hanson: In His Own Words.” “The third scenario is what I would suggest for the Europeans. They should say the following: “‘Despite our disagreements with the Trump administration, the United States is an ally. And we know that we have been as victimized by Chinese mercantilism, high tariffs, cheating on patents, copyrights, dumping, financial money manipulation—all the things the United States complains about, we do too. In fact, we as Europeans in a whole have about the same deficit with China as the United States does. So, we are kindred spirits. So, what we will do is, even though we have disagreements on our surplus with the United States and their efforts to reduce it, we will ally with the United States.’  “And that would represent about two-thirds of China's total trade action or monetary value. 👉Don’t miss out on Victor’s latest videos by subscribing to The Daily Signal today. You’ll be notified every time a new piece of content drops:   https://youtube.com/dailysignal?sub_confirmation=1…   👉If you can’t get enough of Victor Davis Hanson from The Daily Signal, subscribe to his official YouTube channel: https://youtube.com/victordavishanson7273…    👉He’s also the host of “The Victor Davis Hanson Show,” available wherever you prefer to watch or listen. Links to the show and exclusive content are available on his website: https://victorhanson.com Learn more about your ad choices. Visit megaphone.fm/adchoices

At Desjardin, we speak business. We speak equipment modernization. We're fluent in data digitization and expansion into foreign markets. And we can talk all day about streamlining manufacturing processes. Because at Desjardin business, we speak the same language you do. Business. So join the more than 400,000 Canadian entrepreneurs who already count on us. And contact Desjardin today.

We'd love to talk. Business. I'd like to talk today about the role of China, the United States, and the European Union, or just Europe in general, in the context of these tariffs and the so-called trade wars. Right now, Donald Trump has given a 90-day reprieve from high tariffs, and we are maybe on the brink. Nobody wants it, but we might be on the brink of a trade war. But here's my point. What is the attitude of Europe? China has called on Europe to join forces with it. It's kind of crazy, isn't it, that these liberal apparatus

and China would think that a Western democracy would want to join them against the United States. Hello, this is Victor Davis-Hanssen for the Daily Signal. I'd like to talk today about the role of China, the United States, and the European Union, or just Europe in general, in the context of these tariffs and the so-called trade wars. Right now, Donald Trump has given a 90-day reprieve. from high tariffs, I think the 10% tariffs are still in existence, and they are negotiating with a number of European countries and particularly Asian dynamic economies such as South Korea, Taiwan, Japan. In addition to that, they are targeting China with tit-for-tat tariffs, and we are

maybe on the brink, nobody wants it, but we might be on the brink of a trade war, which you've addressed in earlier videos. But here's my point. What is the attitude of Europe? Roughly, China has a $1 trillion deficit with the world. We have about a $1 trillion deficit in trade with the world. But here's the ratios. About a third of our deficit is with China, which makes up a third of their surplus. In addition to that, Europe makes up about a third of their surplus. So China has called on Europe to join forces with it to prevent all of the retaliatory tariffs that the United States has threatened Europe, which has a $200 billion surplus with us, and China, which has a nearly high $300 billion, maybe even $400 billion, who knows.

It's kind of crazy, isn't it, that these illiberal apperate checks in China would think that a Western democracy would want to join them against the United States? I don't think that's going to happen, but the European left is very angry at the Trump administration. So choice one might be, well, we don't like the Chinese, and we are an ally of the Americans who subsidize our defense, but we detests the Trump administration. So maybe wink and nod will either be quiet or hope China wins that trade war in the United States under the Trump administration backs off all tariffs. That would be a big mistake given their vulnerabilities they have with the United States vis-a-vis security. The second attitude might be the Europeans will just say, we'll lay low. We won't

say much at all. We'll kind of drag out our tariff negotiations with the Trump administration and will let the Chinese and the United States battle it out. And if Trump should win, if Trump should win, and he lowers the amount of trade with China, maybe that will be an opening for us to replace China as the United States chief importer. That is something that I don't think will happen. The third scenario is what I would suggest for the year,

Europeans, they should say the following. Despite our disagreements with the Trump administration, the United States is an ally. And we know that we have been as victimized by Chinese mercantileism, high tariffs, cheating on patents, copyrights, dumping, financial money manipulation, all the things the United States complains about. We do too. In fact, we as Europeans in a whole have about the same deficit with China as the United States does. So we are kindred spirits. So what we will do is, even though we have disagreements on our surplus with the United States and their efforts to reduce it, we will ally with the United States.

And that would represent about two-thirds of China's total trade action or monetary value. And especially if Japan and our allies in South Korea or Thailand would join, then China would find out that about 85% of its trade is in a block, that is they are united, and they have common complaints against China. And China would not be able to say to the United States, we're going to cut deals with Vietnam and Japan and Taiwan and South Korea and the EU and leave you out in the cold and said that Europeans, and to a lesser extent, the Asian powerhouses would join the United States and say, you know what, we've been quiet, we're afraid of China, they're bullies, but now that you've stood up, we're emboldened ourselves to air the same complaints as you are and hope that you win, and maybe a byproduct of reduced trade with China from the United States will open the door, so even though we might have to,

lower our tariffs, there will be more opportunity in the American market with a less prominent Chinese trade profile that we can then be welcomed in as a kindred ally. So Europe has two or three choices in this proposed Chinese-American trade standoff. Nobody wants to trade war with anybody. No one wants it with China, but this is long overdue, and Europe has to decide what course they're going to take. For everybody's sake, let's hope they choose wisely. This is Victor Davis Hansen for The Daily Signal. Thank you for tuning in to The Daily Signal.

Please like, share, and subscribe to be notified for more content like this. You can also check out my own website at victorhansen.com and subscribe for exclusive features in addition.