Brussels (Brussels Morning Newspaper) – The European Union is drafting responses to US President Donald Trump’s stated 20% tariffs on imports from the bloc, labeling it a “significant setback for the global economy.”
A day earlier, Trump initiated a historic global trade fight, announcing sweeping global tariffs on dozens of countries, from Nicaragua to Cambodia. The tariffs come on top of previously set taxes on imports of steel, aluminum and cars.
“President Trump’s announcement of universal tariffs on the whole world, including the European Union, is a major blow to the world economy. I deeply regret this choice,”
Ursula von der Leyen, European Commission President, said, adding the tariffs will be felt “immediately.”
The universal tariffs announced by the US are a major blow to businesses and consumers worldwide.
— Ursula von der Leyen (@vonderleyen) April 3, 2025
Europe is prepared to respond.
We'll always protect our interests and values.
We're also ready to engage.
And to go from confrontation to negotiation ↓ https://t.co/WbXqsN4ZX7
Why does Von der Leyen call tariffs a major blow?
“Let’s be clear-eyed about the immense consequences. The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism,”
von der Leyen spoke in Samarkand, Uzbekistan, during her attendance at the EU-Central Asia meeting Summit.
“All businesses, big and small, will suffer from day 1, from big uncertainty to the disruption of supply chains, to burdensome bureaucracy. The costs of doing business with the United States will drastically increase,”
she stated.
What countermeasures is the EU preparing against US tariffs?
While the European Union would choose to work with the US to lower trade barriers, von der Leyen said,
“Europe is ready to respond.”
“We are already finalising the first package of countermeasures in response to tariffs on steel, and we are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,”
she also said.
The EU stands as a key trading partner for the US. According to data from the United States Census Bureau, it was the largest individual market for US goods exports last year, surpassing Canada and Mexico, America’s neighboring countries.
Last month, in response to Trump’s steel and aluminum tariffs, the EU announced countermeasures affecting up to 26 billion euros in American exports, which include tariffs on items like boats and bourbon motorbikes. Both Europe and the US stand to lose significantly in the growing trade dispute.
In 2024, the US ranked as the largest purchaser of European products, importing various items like pharmaceuticals, vehicles, alcoholic beverages, and telecommunications gear, as reported by official EU statistics. At the same time, the EU emerged as the leading supplier of goods to the US last year, according to US data.
How crucial is EU-US trade for the global economy?
“In the past 80 years, trade between the European Union and the United States has created millions of jobs,”
von der Leyen said on Thursday.
“Consumers across the Atlantic have benefited from reduced prices. Businesses have benefited from huge opportunities, leading to unprecedented growth and prosperity.”
The global trading system, she said, has “serious deficiencies.”
“I agree with President Trump that others are taking unfair advantage of the current rules and I am ready to support any efforts to make the global trading system fit for the realities of the global economy,”
von der Leyen said.
“Reaching for tariffs as your first and last tool will not fix it.”
Von der Leyen also stressed that the European Union is ready to negotiate with the US, but Europe must stand up for itself.
“I know that many of you feel let down by our oldest ally. Yes, we must brace for the impact that this will inevitably have. Europe has everything it needs to make it through the storm. We are in this together. If you take on one of us, you take on all of us.”
