Ursula von der Leyen reacts to the “trade war.” The President of the EU Commission responds, on behalf of the EU-27, to the decisions taken by Donald Trump. The tariffs on all European goods and products first threatened and then imposed by the US administration have sent financial markets reeling and, if the trend continues, the impact on businesses, workers and consumers is likely to be severe. This includes inflation because, as the President of the EU Commission has long argued, “tariffs are taxes” that weigh on economic performance and, ultimately, on households.
Particularly worthy of note is the fact that Trump is targeting not only his former European friends, he is also erecting barriers against other commercial partners, not least against powerful China.
“We have everything we need to protect our people and our prosperity,” said Ursula von der Leyen on Tuesday 1st April in her speech at the plenary session of the European Parliament in Strasbourg. Her words were in response to the US tariffs that came into force on 2 April. In her view, “so many Europeans feel utterly disheartened by the announcements from the US. Let me be clear: Europe did not start this confrontation.” She added: “We think it is wrong. That is why the EU must take firm action in three areas, focusing on what the President called “three pillars: first, we are open to negotiations. Second, we will keep diversifying our trade with other partners” (the EU currently has trade agreements with 76 countries and is now looking at India, South Africa, Indonesia, Thailand and even China). And third, “we will double our Single Market.”
“Our message is clear: Europe is reliable, predictable and open for fair business. We have the largest Single Market in the world. We have the strength to negotiate.” After all, the EU’s ‘style’ is to negotiate. And yet Von der Leyen – engaged, as is the whole EU, on an entirely different battlefield, that of the war in Ukraine and the rearmament plan – appears to be quite adamant: “The people of Europe should know that we will always stand up for Europe. […] We will always promote and defend our interests and values. […] The dream of a united Europe began with the idea of breaking barriers and take tariffs down. And create one Single Market. Over the last 70 years we built strong ties also with the USA, and this brought prosperity.” But now the US Administration has announced increase on tariffs (not exactly unprecedented in Trump’s politics…)
“Tariffs are taxes that will be paid by the people. Tariffs will just fuel inflation. This will cost jobs. It will create a bureaucratic monster of new customs procedures that nobody needs”.
Following on from her remarks on the trade war and EU countermeasures, the EU Commission President went on to say: “I have already been in contact with our Heads of State and Government on the next steps”, in the knowledge of further tariffs from overseas (which Trump promptly announced on 3 April). The goal is a negotiated solution. “We think that this confrontation is in no one’s interest”. “This is the largest and most prosperous trade relation worldwide. We would all be better off if we could find a constructive solution.” A clear stance in the face of an unpredictable future.
