Davos (Brussels Morning Newspaper) – European Union’s Commissioner for the Economy, Valdis Dombrovskis, in an interview with CNBC, said that Europe will respond to any tariffs placed by U.S. new President Donald Trump in a proportionate way.
Valdis Dombrovskis told CNBC on the eve of the World Economic Forum in Davos, Switzerland,
“If there is a need to defend our economic interests, we will be responding in a proportionate way.”
“We’re ready to defend our values and also our interests and rights if that becomes necessary,”
He stated.
The commissioner expressed the U.S. and Europe were strategic partners, and it is crucial for them to perform together, both economically and geopolitically. European officials were talking to their U.S. partners to figure a “pragmatic” solution to the dialogue of tariffs, he stated, stating that global growth could be affected if the economic connection between the two countries were hurt.
Dombrovskis further said,
“It’s important to maintain this trade and investment relationship because this global economic fragmentation would set in, and there is a real risk of this happening and the IMF estimates that it would mean a reduction of the world GDP by up to 7%.”
How did Trump threaten to impose tariffs?
Since he was appointed president, Trump has reiterated his threat to levy tariffs on European Union products entering the United States, briefing journalists that the European Union was
“very, very bad to us. So they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”
He also expressed his government was consulting and setting an additional 10% tariff on goods imported from Beijing beginning in February.
How did Commission President Von der Leyen react to Trump’s remarks?
At her speech at the World Economic Forum in Davos, President Ursula von der Leyen of the European Commission also mentioned her views on what Donald Trump’s possible tariffs for the EU’s goods would mean for the future.
Von der Leyen underlined that the European Union would handle this
“new administration in the United States in a very pragmatic way but with a firm belief in its own principles in safeguarding European interests.”.
She stated,
“A lot is at stake for both sides,”
Highlighting the importance of maintaining strong transatlantic ties despite potential tensions.
She warned that the increasing use of economic instruments such as tariffs and sanctions posed a risk of a “global race to the bottom.” She expressed concern over the fact that the measures could easily break bonds of global economic stability and cooperation. She said that there is a need to avoid such a situation.
