UJ
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The European Union is getting ready to implement counteractions in response to President Donald Trump’s recent announcement of a 20% tariff on imports from the EU, referring to it as a “significant setback to the global economy.”
The EU stands as a crucial trading partner for the United States. Last year, it emerged as the largest single market for US goods exports, surpassing neighboring countries Canada and Mexico, according to data from the United States Census Bureau.
“President Trump’s declaration of widespread tariffs affecting the entire globe, including the European Union, is a significant setback to the world economy. I truly regret this decision,” said Ursula von der Leyen, the head of the EU’s executive branch, emphasizing that the impact of the tariffs will be felt “immediately.”
On Wednesday, Trump initiated an unprecedented global trade war, announcing extensive tariffs on multiple countries ranging from Nicaragua to Cambodia. These new tariffs add to already established duties on steel, aluminum, and automobiles.
“Let us be clear about the severe repercussions. The global economy will significantly suffer. Uncertainty will escalate, potentially encouraging more protectionist measures,” von der Leyen stated in Samarkand, Uzbekistan, where she is participating in the EU-Central Asia Summit.
“Every business, regardless of size, will feel the effects from day one, facing significant uncertainties, disruptions to supply chains, and cumbersome bureaucratic processes. The cost of doing business with the United States will rise dramatically,” she remarked.
While the EU would prefer to collaborate with the US to diminish trade barriers, von der Leyen affirmed that “Europe is prepared to respond.”
“We are in the process of finalizing the initial package of countermeasures against the steel tariffs, and we are now gearing up for further actions to safeguard our interests and our businesses should negotiations not succeed,” she added.
Last month, in response to Trump’s tariffs on steel and aluminum, the EU revealed countermeasures affecting exports of American goods worth up to 26 billion euros ($28 billion), which included tariffs on items like boats, bourbon, and motorcycles.
Both the EU and the US have significant stakes in the ongoing trade conflict. In 2024, the US was the largest importer of European goods, encompassing pharmaceuticals, automobiles, alcoholic beverages, and telecommunications equipment, according to official EU statistics. Conversely, the EU was the predominant source of goods imports for the US in the previous year, based on US data.
“Over the last 80 years, trade between the European Union and the United States has generated millions of jobs,” von der Leyen stated on Thursday. “Consumers on both sides of the Atlantic have profited from lower prices. Businesses have enjoyed tremendous opportunities, leading to unparalleled growth and prosperity.”
Nonetheless, she noted that the global trading system faces “serious shortcomings.”
“I concur with President Trump that some are exploiting the current rules unfairly, and I am prepared to back any initiatives aimed at making the global trading system more suitable for today’s economic realities,” von der Leyen stated. “However, resorting to tariffs as the primary or sole solution will not resolve the issues.”
She emphasized that the EU is ready to engage in negotiations with the US, but Europe must also advocate for itself.
“I understand that many of you feel betrayed by our oldest ally. Yes, we must prepare for the inevitable impact of these changes. Europe is well-equipped to weather this storm. We are in this together. If one of us is targeted, all of us are targeted.”
