Trump’s Tariff Threat Ignites EU Fury, Trade War Looms
A trade war between the United States and Europe appears increasingly likely after former president Donald Trump threatened to impose a 30% tariff on goods from the European Union. European leaders are now weighing retaliatory measures.
EU Leaders Respond with Outrage and Resolve
The sudden tariff announcement upended months of negotiations between the EU and Washington, intended to de-escalate trade tensions. Ursula von der Leyen, president of the European Commission, affirmed the EU’s commitment to seeking an agreement before the August 1st deadline, but also vowed to “take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Echoing this sentiment, European Council president António Costa declared on social media that the EU “remains firm, united and ready to protect our interests.”
The EU had anticipated a possible 10% tariff, but the 30% levy came as a shock.
France Calls for Retaliation
Emmanuel Macron of France expressed “very strong disapproval”
of the tariffs, stating that the negotiations had been conducted “in good faith.”
He urged the European Commission to mobilize all available instruments to respond, as France has been a leading voice advocating for retaliatory tariffs against the United States if a deal cannot be reached.
Additional voices calling for retaliation included Brando Benifei and Bernd Lange, both of the European Parliament. Benifei urged the EU to immediately prepare credible countermeasures on goods, services, and intellectual property rights, effective August 1st without an agreement. Lange decried the tariffs as an “outrage”
, urging the EU to use its economic strength to counter “unfair trade practices.”
However, not all European leaders are aligned. Giorgia Meloni of Italy cautioned against escalating the situation, stating that it would make “no sense to spark a trade war between the two sides of the Atlantic.”
She urged negotiators to avoid polarizations.
Economic Impact and Uncertainty
Experts warn of significant economic consequences. Dan O’Brien of the Institute of International and European Affairs, noted that a 30% tariff would have “a significant trade destruction effect.”
According to a recent report by the European Parliamentary Research Service, tariffs imposed by the U.S. and China could reduce the EU’s GDP by 0.4% by 2030 (EPRS 2018).
The threatened tariffs create uncertainty for exporters, including German carmakers, Italian wine exporters, and Irish pharmaceutical companies. Hildegard Müller, head of the German carmakers’ lobby group VDA, called the tariffs “regrettable”
and urged a swift resolution. She noted that existing tariffs were already harming German automakers.
Mexico Expresses Confidence in Reaching a Deal
Despite also facing potential tariffs, Mexican president Claudia Sheinbaum voiced confidence that Mexico would reach an agreement with the U.S., citing previous experience in navigating trade negotiations.
With the August 1st deadline approaching, the world watches to see if a trade war can be averted, or if the United States and Europe are headed for a prolonged period of economic conflict.
