US President Donald Trump’s announcement on Wednesday on 20 % tariffs on imports from the EU, which accounts for over 18 % of all imports to the US, was met by a strong reaction by European Commission Ursula von der Leyen early Thursday morning.
The tariffs on the EU will take effect on April 5 and on the rest of the world on April 9, Trump said at a press conference in the White House Rose Garden.
Starting from a “baseline” of 10 % on imported goods from all over the world, the tariffs vary by country and hit close allies and other countries alike: from Vietnam (46 %), China (34 %), Taiwan (32 %), India (26 %), South Korea (25 %), Japan (24 %), Israel (17 %) to UK (10 %).
Trump described the tariffs as “kind, reciprocal tariffs” and the announcement a “declaration of economic independence” on what he described “Liberation Day”. He promised that jobs and factories will return to the US but the impact will likely be the opposite and lead to inflation and increasing prices in the US.
In a populistic speech detached from economic reality, Trump claimed that the “imbalance in trade” between the US and other countries has been “devastating” for the American economy and that other countries had taken advantage of the American worker. For this he did not blame them but previous presidents.
In her statement, the Commission President said that Trump’s “announcement on universal tariffs on the whole world is a major blow to the world economy”. As in previous statements, she “deeply regretted” his choice but this time she also heavily criticized him and painted a dark picture of the immense and dire consequences.
“Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe. Also, for the most vulnerable countries, which are now subject to some of the highest US tariffs. The opposite of what we want to achieve. The tariffs will also hurt consumers around the world. It will be felt immediately.”
In a rebuke to Trump, she stressed that “In the past eighty years, trade between Europe and the United States has created millions of jobs”. Consumers across the Atlantic have benefited from reduced prices. Businesses have benefited from huge opportunities leading to unprecedented growth and prosperity.
That said, the global trading system has serious deficiencies, she admitted. She even agreed with Trump that other countries are taking unfair advantage of the current rules. The EU is 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.” The EU was ready to negotiate with the US to remove any remaining barriers to transatlantic trade and did not hurry to decide on retaliatory counter measures. Now it will not have any choice but to respond with counter measures to protect its interests and businesses if negotiations fail.
Speaking directly to fellow Europeans, von der Leyen told them that the EU braces for the impact that this will inevitably have. “I know that many of you feel let down by our oldest ally.” She assured them that Europe has everything it needs to make it through the storm. “Europe has the largest Single Market in the world - 450 million consumers - that is our safe harbour in tumultuous times.”
M. Apelblat
The Brussels Times
