President Donald Trump’s extraordinary announcement on tariffs placed on goods entering the United States has been deeply criticised in Europe and described, among other things, as “a major blow to the world economy.”
The European Union now faces 20% tariffs on all goods the USA imports from it. As a long-time ally and trading partner, the EU was the largest single market for goods exported from the US last year. Based on statistics from the US Census Bureau, the EU was a larger market than those of America’s neighbours, Canada and Mexico.
The president of the European Commission, Ursula von der Leyen, responded to Wednesday’s shock announcement from the White House by saying that the EU is preparing “resolute countermeasures.” Meanwhile, she urged Washington to cancel the unilateral tariff measures.
She said in a televised address: “So many Europeans feel utterly disheartened by the announcement from the United States. Let me be clear: Europe did not start this confrontation. We think it is wrong, but my message to you today is that we have everything we need to protect our people and our prosperity. We have the largest market in the world, we have the strength to negotiate, we have the power to push back. Europe holds a lot of cards, from trade to technology to the size of our market, but this is built on our ability to take countermeasures if necessary. All instruments are on the table. Europe has not started this confrontation. We do not necessarily want to retaliate, but if necessary, we have a strong plan to retaliate, and we will use it.”
Trump’s reasoning behind his new global tariffs is that the United States has been “ripped off” by its trading partners for decades. He went further: “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, by friend and foe alike.” Trump assured his supporters that this would no longer happen.
China reacted furiously to the news that its tariffs would rise to a record high of 54%, vowing to retaliate. China’s Ministry of Commerce declared in a statement on Thursday morning that it "firmly opposes the tariff increase and will resolutely take countermeasures to safeguard its rights and interests."
President Trump claimed his measures were “payback for unfair trade policies,” but Ursula von der Leyen’s remark that the new taxes will have “dire consequences for millions of people around the globe” was echoed by many other world leaders. Here are just a few:
Trump’s baseline tariff of 10% has been imposed on the United Kingdom, whose Prime Minister, Sir Keir Starmer, stated that the UK would respond with “cool and calm heads” and pledged “to fight for the best trade deal” with the United States. He added, “Nobody wins in a trade war. That is not in our national interest.”
Japan’s Prime Minister, Shigeru Ishiba: “The US government’s broad trade restrictions will have a significant impact not only on the economic relationship between Japan and the US but also on the global economy and the multilateral trading system as a whole.”
Canada’s Prime Minister, Mark Carney: “We are going to fight these tariffs with countermeasures, we are going to protect our workers, and we are going to build the strongest economy in the G7.”
Australian Prime Minister Anthony Albanese: “The tariffs are baseless and contradict the principles of our nations' longstanding relationship. This is not the act of a friend. Today’s decision will add to the uncertainty in the global economy, and it will push up costs for American households.”
Written by Len Port - Photo courtesy of Depositphotos.com
