After the U.S. took the
decision to impose reciprocal and car tariffs on the E.U., it did not take long
for several of the E.U. states to pressure the federal executive branch, the
European Commission, to punch holes in the E.U.’s counter-tariffs so favored
industries in the E.U. would not face higher prices on supplies from the United
States. As in U.S. states, E.U. states have their own dominant industries, whose
financial interests it is only natural for government to protect, as jobs
translate into votes. But pressuring the E.U.’s federal government to carve out
exceptions for imports desired by favored industries at the state level, such
as automobiles in the E.U. state of Germany, would deny the E.U. the full
benefit of a united front that federalism can provide against other countries.
For maximum leverage in trade negotiations, unilaterally removing
counter-tariffs is not wise; it is like a person intentionally tripping over
himself while trying to get to the grocery store. Given the regional pressures,
trade is rightfully one of the enumerated powers, or exclusive competencies, of
the E.U. rather than a shared competency or a power retained by the states.
The full essay is at The E.U. Stance. "