EU Readies Response to U.S. Tariffs
The European Union is preparing retaliatory measures in response to the latest tariffs imposed by U.S. President Donald Trump, European Commission President Ursula von der Leyen announced on Thursday. Trump’s decision to introduce a 20% tariff on EU imports has sparked concerns about escalating trade tensions between the two economic giants.
“We are prepared to respond,” von der Leyen stated in a live-streamed address. “We are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
Trump’s Sweeping Tariff Policy
On Wednesday, President Trump signed an executive order imposing new tariffs under what he called a “reciprocal tariff” policy. The White House released a list of over 180 countries and territories affected by the policy, including key U.S. trading partners like the EU, Canada, China, and Mexico.
Trump justified the move by stating that many nations have taken advantage of current global trade rules, leading to imbalances that harm American industries. “This is about fairness and ensuring that U.S. businesses and workers get a level playing field,” Trump said at the signing event.
EU Calls for Dialogue but Warns of Retaliation
Despite the strong response from the EU, von der Leyen emphasized that diplomacy should be the preferred path forward. “It is not too late to address concerns through negotiations,” she said. “Let’s move from confrontation to negotiation.”
She reaffirmed that the EU aims to reduce trade barriers rather than increase them. However, she made it clear that if talks fail, the bloc will not hesitate to defend its economic interests.
Economic Fallout and Global Repercussions
Von der Leyen criticized Trump’s tariff move as a “major blow” to the global economy, warning that it could lead to severe disruptions in trade, investment, and financial markets.
“There seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all U.S. trading partners are hit,” she said. “Uncertainty will spiral and trigger the rise of further protectionism.”
She highlighted that the most vulnerable economies, including developing nations that rely heavily on exports, would be disproportionately affected. “The consequences will be dire for millions of people around the globe, including businesses and consumers who will bear the brunt of rising costs.”
EU’s Support for Affected Sectors
The European Commission has pledged to support industries that could suffer from the new tariffs, including steel, automobiles, pharmaceuticals, and other key sectors. Von der Leyen reassured EU businesses that the bloc would implement measures to cushion the impact and maintain competitiveness in global markets.
She also acknowledged that reforms in global trade policies are necessary and agreed that certain nations have engaged in unfair trade practices. “We are ready to support efforts to make the global trading system fit for the realities of the modern economy,” she said.
