Brussels: Europe and the Arabs
European Commission President Ursula von der Leyen said in a statement distributed Thursday morning that President Trump's announcement of sweeping tariffs targeting the entire world, including the European Union, represents a devastating blow to the global economy.
I deeply regret this choice. Let us be aware of the dire consequences. The global economy will suffer greatly.
Uncertainty will deepen and lead to a rise in protectionism. The consequences will be devastating for millions of people around the world, as well as for the most vulnerable countries, which are now subject to some of the highest US tariffs. This is the opposite of what we seek to achieve. The tariffs will also hurt consumers around the world.
They will be felt immediately. Millions of citizens will face higher grocery bills. The cost of medicines will rise, as will transportation costs. Inflation will rise. This will particularly hurt the most vulnerable citizens.
All businesses, large and small, will suffer from day one, from increased uncertainty, disrupted supply chains, and burdensome bureaucracy. The cost of doing business with the United States will rise dramatically. Worse still, chaos seems to be setting in. There is no clear way out of the complexity and chaos that is being created, with all of the United States' trading partners suffering.
Over the past 80 years, trade between Europe and the United States has created millions of jobs.
Consumers across the Atlantic have benefited from lower prices. Businesses have benefited from tremendous opportunities that have led to unprecedented growth and prosperity. At the same time, we know that the global trading system is seriously flawed.
I agree with President Trump that others are unfairly exploiting the current rules. I am prepared to support any efforts to make the global trading system fit the realities of the global economy.
But I also want to be clear: resorting to tariffs as a tool of first and last resort will not fix the situation.
That is why, from the beginning, we have always been ready to negotiate with the United States to remove any remaining barriers to transatlantic trade. At the same time, we are prepared to respond. We are already finalizing the first package of countermeasures in response to the steel tariffs. We are now preparing further countermeasures to protect our interests and businesses should negotiations fail. We will also closely monitor the spillover effects these tariffs may have, as we cannot absorb excess global production capacity and will not accept flooding into our market. As Europeans, we will always promote and defend our interests and values. We will always defend Europe. But there is an alternative path. It is not too late to address concerns through negotiations.
That is why our Trade Commissioner, Maroš Šefčović, is in constant contact with his American counterparts.
We will work to reduce barriers, not increase them. Let us move from confrontation to negotiation. Finally, I would also like to speak directly to my European colleagues. I know that many of you are disappointed with our oldest allies.
Yes, we must prepare for the impact this will inevitably have. Europe has everything it needs to overcome this crisis. We are in this together. If one of us faces us, we face us all. So we will stand together and defend each other. Our unity is our strength. Europe has the largest single market in the world – 450 million consumers – and this is our safe haven in difficult times. Europe will stand with those directly affected. We have already announced new measures to support the steel and automotive sectors. Last week, we limited the amount of steel that can be imported into Europe duty-free. This will give these strategic industries more space. We will now also hold strategic dialogues with the steel, automotive, and pharmaceutical sectors. Others will follow. Europe stands together for our companies, our workers, and all Europeans. We will continue to build bridges with all those who care, as we do, about fair, rules-based trade as the foundation of shared prosperity.