Washington reacts harshly to the EU's attempt at independence

With unexpected harshness, the US reacted to the EU's attempt to become independent, transforming the old transatlantic alliance into a competition for resources and capital. If Europe thought it could build its fortress quietly, Washington has another plan.

• 1. Tariff wall - response to the "Carbon Tax"

The US considers European environmental taxes (CBAM) to be disguised trade barriers. The response came by activating customs tariffs under Section 301 of the US Trade Act. Washington is erecting its own walls, making European products more expensive for Americans. The transatlantic free trade highway is now full of customs duties and taxes, according to the US Department of Commerce.

• 2. The battle for money: Who offers more?

The United States has launched a counteroffensive by extending the Inflation Reduction Act (IRA), offering massive tax credits to "steal" European green technology factories. It's a subsidy arms race that's making global capital more expensive, forcing both blocs to bid up ever-increasing amounts of public money to keep industry at home, according to a Bloomberg Intelligence analysis of transatlantic capital flows under competing subsidies.

• 3. Money Becomes a Weapon of Control

Washington uses the power of the dollar to discipline its allies. Through the Bureau of Industry and Security (BIS), the US imposes strict export controls. European firms that seek "too independent” partnerships in Asia find themselves cut off from the dollar-based financial system, according to Federal Register data, which highlights that it's no longer enough to be a political ally; you have to be fully aligned economically.

• Why do we care?

The "United World” has broken down. We now have two blocs that behave like economic rivals. For the average citizen, this "war of invisible walls" means less investment in consumer goods, technologies that are no longer compatible between continents, and a more expensive life as the big players refuse to cooperate for efficiency.