Economic Update
Ursula von der Leyen, President of the European Commission, has issued a strong warning to US President Donald Trump regarding the potential imposition of new customs duties on imports from the European Union.
Following a summit of European Union leaders in Brussels, von der Leyen emphasized, “The European Union will respond firmly when we are unfairly or arbitrarily targeted.”
She elaborated on the current economic environment, noting, “New challenges and uncertainty exist, so the European Union stands ready for strong yet constructive dialogue with the United States.” This indicates the bloc’s preparedness to manage the situation effectively.
Von der Leyen cautioned against escalating tensions, advocating for proactive engagement in negotiations. She warned that “customs duties increase business costs, negatively impact workers and consumers, create unnecessary economic disruption, and contribute to higher inflation.”
She further stated, “We do not perceive substantial benefits arising from such measures.”
Shortly before the EU meeting, Trump reiterated his plans to introduce customs duties on European imports, citing the significant trade deficit between the United States and the EU.
“This will definitely happen with the European Union,” Trump asserted. “Because they have benefited greatly,” he added, providing limited specifics but indicating that such actions would take place “soon.”
According to European diplomats, the European Commission has already developed potential countermeasures in anticipation of these developments.
During his campaign, Trump proposed new customs duties of up to 10 percent on EU imports, asserting that this would bolster domestic industries and address the trade deficit.
Trade relations between the United States and the European Union have already faced significant strain during Trump’s administration, particularly after the US imposed tariffs in 2018 on steel and aluminum imports. The European Union responded with retaliatory tariffs on American products, including Bourbon whiskey, Harley Davidson motorcycles, and jeans.