The European Union is preparing to counter the 20% levies imposed by Donald Trump on European goods. Ursula von der Leyen, the Commission president, has stated that a first package of countermeasures is being finalized to respond to tariffs on steel, and further countermeasures are being prepared to protect EU interests and businesses if negotiations fail. The EU is also closely monitoring the potential indirect effects of these tariffs on global overcapacity and dumping. Trump’s announcement of a 10% minimum tariff on all countries has put the EU on a list of 60 “worst offenders”, subjecting it to a higher rate of 20%. Additional tariffs on automobiles made outside the US have also been imposed, prompting outcry from countries like Sweden and Ireland who fear growing trade barriers and the negative impact on their populations.
Sweden and Ireland have both expressed regret at the additional tariffs and emphasized the need to avoid a trade war that would impoverish populations and make the world more dangerous in the long run. However, Sweden and Ireland have asserted their preparedness to handle the current situation, citing strong economic foundations and the readiness to find negotiated solutions with the US. The EU, according to von der Leyen, holds a strong position in negotiations with the US, given its trade, technology, and market size advantages. The EU has recorded a goods surplus with the US of €156.6 billion in 2023 but faces a services deficit of €108.6 billion. Brussels has already identified two lists of US products that could potentially face tariffs, including goods that were previously subject to suspended tariffs in 2018.
The EU officials have suggested that further measures may be necessary, potentially targeting services in response to escalating trade tensions with the US. Von der Leyen acknowledged Trump’s concerns about other countries taking advantage of existing trade rules and expressed readiness to support efforts to revamp the global trading system to better align with the realities of the global economy. However, she cautioned against relying solely on tariffs as a solution, emphasizing the need to shift from confrontation to negotiation to address trade issues more effectively. The EU is committed to responding in a proportionate manner that protects the interests of its citizens, workers, and businesses.
The EU-Central Asia summit in Uzbekistan provided a platform for von der Leyen to address the escalating trade tensions with the US and outline the EU’s stance on potential countermeasures. The Commission president emphasized the importance of safeguarding EU interests and businesses through strategic responses to tariffs imposed by the US. The EU’s position of strength in negotiations was highlighted, with von der Leyen underscoring the bloc’s trade, technology, and market advantages as key leverage points. As the EU prepares to implement countermeasures in response to US tariffs, the focus remains on finding negotiated solutions to avoid further escalation of trade tensions and mitigating the potential negative impacts on trade and the global economy.
In conclusion, the EU’s response to the 20% tariffs imposed by Trump on European goods includes finalizing a package of countermeasures and preparing for further actions if negotiations fail to protect EU interests and businesses. The bloc is closely monitoring the potential indirect effects of these tariffs and is ready to respond in a proportionate manner to safeguard its citizens, workers, and businesses. While acknowledging concerns about trade imbalances and the need for a revamped global trading system, the EU stresses the importance of moving from confrontation to negotiation to address trade issues effectively and mitigate the risks of a trade war. The EU’s position of strength in negotiations with the US, coupled with its readiness to find negotiated solutions, reflects a strategic approach to navigating escalating trade tensions and upholding the interests of the EU and its member states.
