Unexpected Benefits?
Economy / Finance

Unexpected Benefits?

A leading German economic advisor is suggesting that certain consequences of the ongoing trade dispute between the United States and the European Union have yielded unexpected benefits. Lars Feld, a respected voice in German economics, argues in a recent commentary for the Handelsblatt that the tariffs have accelerated Europe’s efforts to diversify its energy sources.

Feld posits that increased imports of American energy – both oil and natural gas – are facilitating a faster decoupling from Russian supplies. He also expressed a more lenient view regarding supplementary arms imports from the U.S. Pointing to the limitations of the existing European defense industry, Feld stated that acquiring military equipment from the United States is presently necessary to bolster defense capabilities, particularly within Germany.

Beyond the economic implications, Feld highlighted a significant political dimension. He observed that the reliance on American energy and defense resources is fostering closer cooperation between the U.S. and the EU. While previous trade policies carried the potential to create divisions, energy and arms agreements are acting as a “binding agent” for Western unity – a message that Feld believes is being noted by both China and Russia.