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BRUSSELS: European Commission President Ursula von der Leyen described US Donald Trump’s universal tariffs as a major blow to the world economy and said the European Union was prepared to respond with countermeasures if talks with Washington failed.
“We are already finalizing the first package of countermeasures in response to tariffs on steel,” she said in a statement read out in Uzbek city Samarkand on Thursday, ahead of an EU-Central Asia partnership summit.
“And we’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
She did not provide any details of future EU measures. The EU plans to impose counter tariffs on up to €26 billion ($28.4 billion) of US goods this month in response to US steel and aluminum tariffs that took effect on March 12.
Trump on Wednesday unveiled a 10 percent minimum tariff on most goods imported to the United States — with a higher 20 percent rate for the European Union — kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.
Von der Leyen said she deeply regretted the US move and warned of “immense consequences” for the global economy, including vulnerable countries facing some of the highest US tariffs.
“Uncertainty will spiral and trigger the rise of further protectionism,” she said, pointing to higher consumer costs for groceries, medication and transport and disruption for businesses.
“What is more, there seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all US trading partners are hit,” she continued.
Von der Leyen said she agreed with Trump that others had taken unfair advantage of global trade rules and was ready to support efforts to reform them.
“It is not too late to address concerns through negotiations,” she said.