Economy News – Follow-up
The European Commission has asserted that the European Union will respond “firmly and immediately” to what it deems “unjustified” trade measures proposed by US President Donald Trump.
The Commission characterized Trump’s proposed mutual customs duties as a detrimental move that exacerbates economic uncertainty and undermines global market efficiency.
In an official statement, the European Commission, which oversees the trade policies of the 27 EU member states, declared, “The European Union will firmly and immediately respond against unjustified barriers to free and fair trade.”
The EU is currently awaiting further details on Trump’s proposal, with April 1 set as the deadline for its potential implementation. Trump has cited various barriers in the EU, including VAT, as instances of unfair trade practices that warrant the United States’ response.
In a recent announcement, Trump stated his decision to impose reciprocal tariffs, marking a significant escalation in the international trade tensions he initiated upon taking office in January.
Trump has indicated that the United States’ allies often present greater challenges in trade than its adversaries, specifically criticizing the European Union’s approach as “fully brutal” in its dealings with the US.
According to a White House official, “Customs duties will be specially designed for every commercial partner of the United States and will take into account the tariffs they impose on American goods, as well as taxes regarded as ‘discriminatory,’ such as VAT.”
The European Commission has responded by highlighting that the EU maintains some of the lowest customs tariffs globally and sees no justification for increased US tariffs on its exports. The Commission remains committed to protecting European businesses and consumers.
Moreover, the Commission emphasized that “Customs duties are taxes. By imposing customs duties, the United States is in effect taxing its citizens, which increases business costs, hampers growth, and fuels inflation.”
Since taking office, Trump has proposed a range of customs tariffs targeting many of the United States’ largest trading partners, asserting that such measures will combat unfair practices, often using threats to leverage political influence.
President Trump has detailed plans to enhance customs duties on all US trading partners based on the tariffs those countries impose on American goods, aligning charges under a base treatment framework.
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