US President Donald Trump’s universal tariffs are a major blow to the world economy and the European Union is prepared to respond with countermeasures if talks with Washington fail, European Commission President Ursula von der Leyen says.
“We are already finalising the first package of countermeasures in response to tariffs on steel,” she said in a statement read out in Uzbek city Samarkand on Thursday, before an EU-Central Asia partnership summit.
“And we’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
She did not provide any details of future EU measures.
The EU plans to impose counter tariffs on up to 26 billion euros ($A45 billion) of US goods this month in response to US steel and aluminium tariffs that took effect on March 12.
Trump on Wednesday unveiled a 10 per cent minimum tariff on most goods imported to the United States – with a higher 20 per cent rate for the European Union – kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.
Von der Leyen said she deeply regretted the US move and warned of “immense consequences” for the global economy that “will be dire for millions of people”.
Rising protectionism would result in groceries, transport and medicines costing more, she said, “And this is hurting, in particular, the most vulnerable citizens.”
Von der Leyen said she agreed with Trump that others had taken unfair advantage of global trade rules and was ready to support efforts to reform them.
Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the US but also was prepared to respond with countermeasures.
with AP
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