Von der Leyen reacts to Trump’s global tariffs: “Dire consequences but we are ready to respond”

Brussels – As expected, Donald Trump launched his personal challenge to global trade last night, announcing 10 percent tariffs for all countries and higher reciprocal tariffs for the 60 “worst offenders,” those with the most significant trade imbalances with the United States. From the White House Rose Garden, armed with a blackboard, Trump rattled off numbers to allegedly prove that the whole world “has been robbing us for 50 years, but it won’t happen again.” For the European Union, guilty, according to Trump, of “charging us 39 percent,” tariffs will be 20 percent. With the first light of dawn came the harsh response from Ursula von der Leyen, who warned, “The consequences will be dire for millions of people around the globe.”

In a video message broadcast from Uzbekistan, where she is for a meeting between European and Central Asian leaders, the EU leader clarified “the immense consequences” of the new US administration’s protectionist zeal. “Uncertainty will spiral and trigger the rise of further protectionism, inflation will rise, millions of citizens will face higher spending bills,” von der Leyen predicted. “Medication costs will also go up, as well as transportation,” she continued.  It will be “in particular the most vulnerable citizens” who will pay the price, but also “all businesses, large and small,” which “will be affected from day one.”

Moreover, the EU leader pointed out that there is “No clear path through the complexity and chaos that is being created as all US trading partners are hit.” Before moving on to countermeasures, von der Leyen extended a hand overseas: “We know that the global trade system has serious deficiencies.
I agree with President Trump that others are taking unfair advantage of the current rules,” she admitted.  “From the outset, we have always been ready to negotiate with the US to remove any remaining barriers to Transatlantic trade,” she said. “It is not too late to address concerns through negotiations,” she said, urging Washington to “move from confrontation to negotiation.”

However, in the meantime, Brussels “is already finalizing a first package of countermeasures in response to tariffs on steel,” effective since March 12, and it is “preparing for further countermeasures.” The first move is expected to be the entry into force of tariffs on 26 billion euros worth of US products that the EU had already announced after the steel tariffs, only to backtrack in hopes of a negotiated solution and following the European industry’s misgivings.

Von der Leyen promised the European sector that “we will keep an eye on the indirect effects these tariffs might have because we cannot absorb global overcapacity nor will we accept dumping in our market.” And to European citizens “disappointed in our oldest ally,” she assured that “Europe has everything it needs to weather this storm.”