EU Warns of Countermeasures as World Leaders Respond to US Tariffs 👉 Updatem News

The EU said the global economy will ’massively suffer’ under Trump’s new tariffs.

The European Union will unveil countermeasures to U.S. President Donald Trump’s latest tariffs if negotiations with the White House stall, European Commission President Ursula von der Leyen said on April 2, as leaders around the world responded to the new levies.

Trump on Wednesday unveiled a 10 percent minimum reciprocal tariff on most goods imported to the United States, while imposing a higher 20 percent levy on the European Union.

He said the tariffs were designed to help rebuild the U.S. economy and prevent cheating.

In a statement read out in Uzbek city Samarkand, von der Leyen said the newly unveiled tariffs were “a major blow to the world economy” that will have “immense consequences.”

“The global economy will massively suffer,” the EU chief said. “Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe.”

Inflation will also soar, and the most vulnerable citizens will likely be impacted, von der Leyen stated.

“I agree with President Trump, that others are taking unfair advantage of the current rules,” she said. “And I am ready to support any efforts to make the global trading system fit for the realities of the global economy. But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it.”

“That is why, from the outset, we have always been ready to negotiate with the US, to remove any remaining barriers to Transatlantic trade,” von der Leyen said. “At the same time, we are prepared to respond.”

Von der Leyen said the EU is finalizing a package of countermeasures in response to tariffs on steel, referencing the 26 billion euro (roughly $28 billion) package of tariffs the EU plans to impose on some American goods this month after Trump’s U.S. steel and aluminum tariffs took effect on March 12.

“We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” the EU chief said.

Her comments come as Trump announced tariffs on nearly all U.S. trading partners, part of what he said are efforts to balance trade deficits.

The rates include a flat 10 percent baseline levy, along with additional individualized rates that Trump said are designed to match each nation’s trade barriers on the United States. The tariffs are set to take effect at 12:01 a.m. on April 5.

Speaking from the Rose Garden at the White House, Trump declared it was “Liberation Day in America” and said the tariffs would “make America greater than ever before,” simultaneously boosting domestic manufacturing and lowering prices for consumers.

The president described the EU as pathetic and said it was “ripping off” the United States.

“Now we’re going to charge the European Union. They’re very tough. Very, very tough traders,” Trump said.

World Leaders Respond

Canadian Prime Minister Mark Carney vowed to fight the tariffs with countermeasures and “build the strongest economy in the G7.”

Swedish Prime Minister Ulf Kristersson expressed “deep regret” over the path the United States has embarked upon.

“We don’t want growing trade barriers. We don’t want a trade war. That would make our populations poorer and the world more dangerous in the long run,” Kristersson said. “But – Sweden and the Swedish Government are well prepared for what’s happening now. We stand on solid economic ground, with world-class public finances.”

Kristersson added that he will “take every opportunity” to reverse the tariffs in the EU and hopes to be able to contain the new U.S. tariffs.

“We want to find our way back to a path of trade and cooperation together with the US, so that people in our countries can enjoy a better life. Sweden will continue to stand up for free trade and international cooperation,” he said.

Taoiseach (Irish Prime Minister) Micheál Martin said the tariffs “benefit no one.”

“My priority, and that of the government, is to protect Irish jobs and the Irish economy,” he said in a social media statement.

British Prime Minister Kier Starmer said a trade war was not in the UK’s national interest.

“Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship – they continue,” he said.

Italian Prime Minister Giorgia Meloni said her administration will do “everything we can” to work towards an agreement with the United States. She said Italy hopes to avoid a trade war that “would inevitably weaken the West in favor of other global players.”

French President Emmanuel Macron will meet with representatives from business sectors hit by the new taxes at the Élysée Palace on April 3, the French presidency said.

Reuters contributed to this report.

Original News Source Link – Epoch Times

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