BUSINESS
03/07/2009 05:12 am ET | Updated May 25, 2011

Trade War Brewing Over Obama's "Buy American" Policy

The Times (UK) reports on a brewing trade war between the EU and the US over President Obama's "Buy American" remarks:

The European Union warned the US yesterday against plunging the world into depression by adopting a planned "Buy American" policy, intensifying fears of a trade war.

The EU threatened to retaliate if the US Congress went ahead with sweeping measures in its $800 billion (£554 billion) stimulus plan to restrict spending to American goods and services.

Gordon Brown was caught in the crossfire as John Bruton, the EU Ambassador to Washington, said that "history has shown us" where the closing of markets leads -- a clear reference to the Depression of the 1930s, triggered by US protectionist laws.

Read the rest of the article at The Times or read a report on the subject from the Peterson Institute for International Economics, embedded below:

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