European Union prepares additional countermeasures against U.S. tariffs, warns of global economic consequences

Soror Shaiza | Apr 03, 2025, 14:59 IST

European Union regrets Trump's car tariffs: EU Chief

( Image credit : IANS )

The European Union, led by President Ursula von der Leyen, is preparing further countermeasures against new U.S. tariffs. With tensions rising between global trading powers, von der Leyen warns that the chaos created by tariffs could lead to widespread uncertainty, harming vulnerable economies and intensifying protectionism.

Following the U.S. imposition of a 20% tariff on European Union goods, European Commission President Ursula von der Leyen stated that the EU is ready to take further action if negotiations fail. Von der Leyen described the move as a "major blow" to the global economy and cautioned that such tariffs would only fuel economic uncertainty and lead to a spiral of protectionist policies.

Von der Leyen expressed concern that President Donald Trump’s decision to raise tariffs could have dire global repercussions. She emphasized the risk of escalating protectionism, which could harm not only the EU but also the most vulnerable economies globally. Despite agreeing with Trump on addressing unfair trade practices, she cautioned that relying solely on tariffs would not solve the issues at hand.

In response to the tariffs, the EU had already announced retaliatory duties last month on $28 billion worth of U.S. goods. These tariffs were originally suspended but are now set to be reintroduced. The list includes industrial-grade steel and aluminum, as well as a variety of other products like bourbon, agricultural goods, leather items, and home appliances. These additional duties are expected to take effect in mid-April.

While the EU is open to discussions about making the global trade system more equitable, von der Leyen made it clear that continued reliance on tariffs as a primary tool would not be effective. The EU's stance remains firm: it is prepared to defend its interests and work towards a fairer global economic framework, but it also warns that the U.S.’s approach could harm the global economy in the long run.

As tensions between the U.S. and EU continue to rise over tariff disputes, the global economy faces the looming threat of further protectionist measures. The EU is bracing for the potential fallout, while maintaining that tariffs are not the solution to the world’s trade challenges. The coming weeks could see even more retaliatory actions, depending on the outcomes of ongoing negotiations.