European Commission President von der Leyen warns US tariffs will hurt global economy, vows to stand up for Europe
“Let’s be clear-eyed about the immense consequences. The global economy will massively suffer,” von der Leyen said in a statement. “Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe.”
On Wednesday, President Trump announced broad-based baseline tariffs of at least 10% on all imported goods into the US, effective April 5. He also announced reciprocal – and much higher, percentage-wise – tariffs on import goods from certain US trade partners with big trade deficits. Levies were set at 34% on Chinese goods and 20% on EU goods, as well as 46% for Vietnam, 32% for Taiwan, 26% for India and 24% for Japan, among others.
Neither Russia nor North Korea were in the list of companies to be hit with tariffs, although there is probably little to no trade between the US and these countries.
Von der Leyen said in the past 80 years trade between the EU and US had created millions of jobs and consumers across the Atlantic had benefitted from reduced prices. The global trade system was not without its flaws, she said.
“I am ready to support any efforts to make the global trading system fit for the realities of the global economy. But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it,” she said.
Von der Leyen called for negotiations between the EU and US to avoid a trade war, but she said the EU was preparing for further countermeasures to protect Europe’s interests and businesses if those negotiations with the US fail.
“As Europeans we will always promote and defend our interests and values. And we will always stand up for Europe,” she said. “But there is an alternative path. It is not too late to address concerns through negotiations.”
Potential countermeasures the EU announced on March 12 in response to US tariffs on aluminium and steel could cover a wide range of agricultural and industrial goods including potentially some wood products, pulp, paper and board.
The Commission also earlier in March opted to delay its set of initial countermeasures on US tariffs from April 1 until mid-April, to coincide with a second package of measures on which the Commission is currently consulting.
