The European Commission will respond in a "firm and immediate" manner to the "reciprocal tariffs" announced yesterday by the President of the United States, Donald Trump, which have completely unleashed the trade war between the US and Europe. Brussels' response will, therefore, escalate this battle.
In a press release, the Commission argues that the new tariffs are "unjustified barriers to free and fair trade," maintains that it will "always protect European companies, workers, and consumers from unjustified tariff measures," and warns Trump that the decision he has taken "is a step in the wrong direction".
Trump's measure is a response to the VAT applied by Europe, which the President claims is a trade barrier when it is not. The measure will impose rates equivalent to the tax and will come into effect from April. In addition, the US President announced that he will also impose tariffs on cars, chips, or pharmaceutical products.
"The EU maintains some of the lowest tariffs in the world and sees no justification for increasing US tariffs on its exports. Tariffs are taxes. By imposing tariffs, the US taxes its own citizens, increases costs for companies, stifles growth, and fuels inflation. Tariffs increase economic uncertainty and disrupt the efficiency and integration of global markets," the Commission states in its press release, thus emphasizing the warnings it already made after the announcement of tariffs on aluminum and steel.
The body led by Ursula von der Leyen argues that the European Union "is one of the most open economies in the world, with over 70% of imports tariff-free," and that the "average tariff applied by the EU to imported goods remains one of the lowest in the world." "Economic integration and the elimination of trade barriers have been fundamental to the success of the European Union," it concludes, thus highlighting that its policy is the opposite of the protectionism being imposed by Trump.
Von der Leyen herself, who has participated in a campaign event in support of the CSU in Germany, has also personally responded to Trump's measures. "Trade wars are not profitable for anyone," she assured, while warning that the US tariff policy "will not go unanswered". "We will take proportionate and clear countermeasures," she added, reiterating the message she already delivered earlier this week when the aforementioned tariffs on steel and aluminum were announced.
The trade confrontation is also intertwined with the demands of the new US President for Europe to spend more on defense and be able to defend itself, as his Administration considers that European security is no longer a priority, as well as with the agreement he has reached with Vladimir Putin to achieve peace in Ukraine. A devilish global scenario unleashed by the "electroshock" Trump, as French leader Emmanuel Macron has defined it.