With the Trump administration backing out of the Paris climate agreement and proposing a border wall and steel tariff, its domestic priorities are causing more allies to become enemies, policy analysts said.
Daniel Griswold, former director of the Center for Trade Policy at the Cato Institute, chastised the Trump administration's protectionist trade attitude while other G-20 countries become more globalized. He said President Donald Trump "unwisely walked away" from the Trans-Pacific Partnership, and now the U.S. can't benefit from the EU-Japan free trade agreement announced Thursday.
Additionally, Trump has picked fights with key allies with the possibility of a steel tariff. When asked if European countries will go through with threats to tax U.S. products in retaliation for a steel tariff, Griswold gave a resounding yes.
"The European Union will retaliate," Griswold said in an interview with CNBC's "Squawk on the Street." "If we use national security as a cloak to protect our steel industry they will retaliate not just against U.S. steel but against orange juice and, as you mentioned, bourbon and potatoes and things like that."
Scott Morris, senior fellow at the Center for Global Development, agreed with Griswold, and blamed Trump for a possible trade war.
"It's another example of not treading carefully, not ... fully weighing these issues before making these public statements," Morris said on CNBC's "Squawk Alley."