the EU is assessing its economic relations with the USA and its approach to negotiate trade barriers
The European Union (E.U.) is gearing up to retaliate against sweeping new 20% tariffs on imports from the bloc, announced by the President of the United States (U.S.), Donald Trump.
E.U. has warned that the move poses a major threat to the global economy. The tariffs will add to existing duties on steel, aluminium and automobiles.
Speaking on the occasion, the President of the European Commission – Ursula von der Leyen, said, “President Trump’s announcement of universal tariffs on the whole world, including the European Union, is a major blow to the world economy. I deeply regret this choice.”
She further said, “Let’s be clear-eyed about the immense consequences. The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism. All businesses, big and small, will suffer from day 1, from big uncertainty to the disruption of supply chains to burdensome bureaucracy. The costs of doing business with the United States will drastically increase.”
The E.U., one of America’s largest trading partners, was the biggest single market for U.S. goods exports last year, surpassing Canada and Mexico, according to U.S. Census Bureau data. European Officials have repeatedly emphasized the importance of free trade and expressed a preference for cooperation over confrontation.
She added, “While we would rather work with the United States to reduce trade barriers, we will not hesitate to defend our interests. We are already finalizing the first package of countermeasures in response to tariffs on steel, and we are now preparing further actions should negotiations fail.”
Last month, the E.U. retaliated against earlier U.S. tariffs on steel and aluminium by imposing levies on U.S. $ 28 billion worth of American goods, targeting products such as bourbon, motorcycles and boats.
The escalating dispute could have significant economic repercussions. In 2024, the U.S. was the largest buyer of European goods, importing a range of products from pharmaceuticals and automobiles to telecommunications equipment and alcoholic beverages. At the same time, the E.U. was America’s biggest source of imports.
Ursula emphasized the long-standing economic relationship between the two allies, highlighting the millions of jobs and business opportunities created over the past 80 years. However, she acknowledged concerns over flaws in the global trading system.
She also stated, “I agree with President Trump that others are taking unfair advantage of the current rules and I am ready to support any efforts to make the global trading system fit for the realities of the global economy. Reaching for tariffs as your first and last tool will not fix it.”
She stressed that the E.U. is ready to negotiate with the U.S., but Europe must stand-up for itself.
