The European Union has vowed to respond ‘firmly’ if US President Donald Trump imposes tariffs on the bloc, condemning his latest trade actions against Canada, Mexico and China.
Until now, Brussels has emphasised negotiation as a means of avoiding a trade conflict with Washington. However, on Friday, Trump reinforced his stance, declaring he ‘absolutely’ intended to target the EU after already imposing tariffs on his North American neighbours and China.
‘The European Union regrets the US decision to impose tariffs on Canada, Mexico, and China,’ a European Commission spokesman stated.
‘Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.’
The spokesman affirmed that ‘the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods’.
‘At this time, we are not aware of any additional tariffs being imposed on EU products,’ he noted.
The EU, comprising 27 member states, remains committed to ‘drive growth and economic stability within a strong, rules-based trading system’, he said.
He also reiterated the importance of the EU-US trade and investment relationship, describing it as ‘the biggest in the world’ and emphasising that both sides should seek to strengthen it.
‘There is a lot at stake,’ he warned. ‘We should both be looking at strengthening this relationship.’
Trump has repeatedly criticised the EU, accusing it of treating the United States ‘very, very unfairly’ in trade matters.
Speaking on Monday, the EU’s top diplomat stressed that ‘there are no winners in trade wars’ as European leaders gathered for defence talks overshadowed by Trump’s tariff threats.
‘We need America, and America needs us as well,’ Kaja Kallas told reporters upon arriving at the meeting.
French President Emmanuel Macron urged the EU to assert its strength should Trump follow through with tariffs.
‘If we are attacked in terms of trade, Europe – as a true power – will have to stand up for itself and therefore react,’ Macron stated at the leaders’ summit in Brussels.
Adding to tensions, Trump has repeatedly expressed his desire to take Greenland from Denmark, an EU member.
During his first term in 2018, Trump imposed tariffs on European steel and aluminum exports, prompting retaliatory measures from Brussels. In anticipation of a possible repeat, the EU has spent months preparing its response should he escalate a new trade dispute.
EU diplomats and officials maintain that the bloc is united and possesses the necessary tools to counter any measures Trump enacts. However, analysts suggest internal divisions may emerge under pressure.
Germany, Europe’s economic powerhouse, faces a challenging election this month and a sluggish economy, making it particularly hesitant about tariffs. Trump may also attempt to exploit differences among EU member states to weaken their collective stance.
Some European leaders have already sought to forge closer ties with him, with Italy’s Prime Minister Giorgia Meloni leading the charge.
On Sunday, Italian Foreign Minister Antonio Tajani wrote that a ‘tariff war does not help anybody’, adding that Italy has strategies to safeguard its businesses and intends to mediate with Washington.
EU officials remain optimistic that diplomatic efforts could dissuade Trump from imposing new tariffs.
Back in November, European Commission President Ursula von der Leyen proposed a potential incentive – purchasing more liquefied natural gas from the US – to appease Trump. The plan has been framed as a win-win for Brussels, aiding in reducing reliance on Russian energy while also offering economic benefits to the US.
Trump has pushed for greater EU imports of American oil, gas, cars, and agricultural products.
EU leaders are expected to deliberate on the looming tariff threat during a meeting in Brussels on Monday, originally planned to focus on defence matters.
Despite ongoing trade disputes, the US remains Europe’s key security partner through NATO. Many EU states, particularly those wary of Russia, are cautious about provoking Trump, fearing it could jeopardise Washington’s commitment to their defence.
European leaders are meeting at a critical moment for European defence.
My doorstep ahead of the informal EU Leaders’ retreat ↓ https://t.co/ZWCNWilCEa
— Kaja Kallas (@kajakallas) February 3, 2025
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