Part 5/10:
Strategic Options for the EU
Option 1: Do Nothing and Negotiate
The first route the EU could take is to refrain from retaliation and pursue negotiations aimed at reducing tariffs and seeking exemptions. This approach would involve deploying monetary policies to stabilize the economy, minimizing immediate negative impacts. However, this could embolden the Trump administration to push for further concessions, potentially setting up the EU for a future quagmire.