The US is warning the European Union on trade — again. This time it’s about the bloc’s looming push for “Made in Europe” rules to shore up its industrial base after a painful shellacking at the hands of Chinese competition and Trumpian tariffs. It’s pretty rich of the US to claim the EU is acting unfairly on trade and undermining transatlantic defense. More notable is pushback from non-US trading partners and the economic cost of such measures longer-term. They ultimately point to the need for a sharper competitiveness fix.

Proposed “Made in Europe” rules mandating local content in electric cars and other green-tech sectors deemed strategic show an urgent need to tackle de-industrialization. The German industrial sector so loathed by Donald Trump lost 120,000 jobs last year; a similar number disappeared in the last two years among the continent’s car suppliers, who estimate Chinese rivals have a cost advantage of around 30%. There’s a need to reduce reliance on fossil fuels, but also on China, whose mix of high subsidies, overcapacity and genuine innovation has made the likes of automaker BYD Co. globally dominant. The EU has moved to deliver more free-trade deals and less red tape in response; stronger stuff is now needed.

© Bloomberg