EU pushes back against Trump tariff threat
The EU said it would vigorously fight a wholesale tariff of 25% on all EU products headed for the US.
The European Union has pushed back against allegations by Donald Trump that the 27-nation bloc is out to get the US, and warned that it would fight any wholesale tariff of 25% on all EU products.
The dispute – after the US president targeted an age-old ally and its main post-war economic partner – further deepened the transatlantic rift which had already been widened by his warnings that Washington would drop security guarantees for its European allies.
Mr Trump told reporters that “the European Union was formed in order to screw the United States. That’s the purpose of it, and they’ve done a good job of it”, adding that it would stop immediately under his presidency.
Donald Tusk, Prime Minister of Poland, which holds the EU’s rotating presidency, responded on Thursday, writing on X: “The EU wasn’t formed to screw anyone.
“Quite the opposite. It was formed to maintain peace, to build respect among our nations, to create free and fair trade, and to strengthen our transatlantic friendship. As simple as that.”
And Spanish Prime Minister Pedro Sanchez added fiery fuel to the debate.
“We will stand up to those who attack us with unfair tariffs and veiled threats to our sovereignty. We are committed and prepared to do so,” he said.
The EU warned that any tariffs would trigger countermeasures on famous US industries like bourbon, jeans and motorcycles.
“The EU will react firmly and immediately against unjustified barriers to free and fair trade,” European Commission trade spokesman Olof Gill said in a statement.
“We will also protect our consumers and businesses at every turn. They expect no less from us.”
Mr Trump said late on Wednesday that the US stood ready.
“We are the pot of gold. We’re the one that everybody wants. And they can retaliate. But it cannot be a successful retaliation, because we just go cold turkey. We don’t buy any more. And if that happens, we win.”
Mr Gill also hit back at Mr Trump’s claim about the inception of the EU and its development as an economic powerhouse.
“The European Union is the world’s largest free market. And it has been a boon for the United States,” he said, adding that the EU has “facilitated trade, reduced costs for US exporters, and harmonised standards and regulations”, which makes it easier for US exporters.
The EU estimates that the trade volume between both sides stands at about £1.2 trillion, representing around 30% of global trade.
Mr Trump has complained about a trade deficit, but while the bloc has a substantial export surplus in goods, the EU says that is partly offset by the US surplus in the trade of services.
The EU says trade in goods reached 851 billion euros (£703 billion) in 2023, with a trade surplus of 156 billion euros (£129 billion) for the EU. Trade in services was worth 688 billion euros (£568 billion) with a trade deficit of 104 billion euros (£86 billion) for the EU.
The figures are so big that it remains essential to avoid a trade war, the EU has said.
“We should work together to preserve these opportunities for our people and businesses. Not against each other,” Mr Gill said.
“Europe stands for dialogue, openness and reciprocity. We’re ready to partner if you play by the rules.”
