NNA - US President Donald Trump’s announcement of a new 20% tariff on the European Union drew a sharp rebuke from European Commission President Ursula von der Leyen.
The EU leader said it was a major blow to the world economy and the consequences “will be dire for millions of people."
Groceries, transport and medicines will cost more, she said, “and this is hurting, in particular, the most vulnerable citizens.”
Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the US but was also prepared to respond with countermeasures.
Her comments come as US President Donald Trump's tariff announcement was met, initially, with measured reactions from key trading partners, highlighting the lack of appetite for a full-fledged trade war.
Trump presented the import taxes, which he calls “reciprocal tariffs” and range from 10% to 49%, in the simplest terms: the US would do to its trading partners what he said they had been doing to the US for decades.
“Taxpayers have been ripped off for more than 50 years,” he said. “But it is not going to happen anymore.”
The president promised that “Jobs and factories will come roaring back into our country.” He framed it not just as an economic issue, but a question of national security that threatens “our very way of life.”
Financial markets were jolted, with US stock futures down by as much as 3% early Thursday and Tokyo’s market leading losses in Asia. Oil prices sank more than $2 a barrel and the price of bitcoin dropped 4.4%.
Shortly after Trump's announcement, the British government said the United States remains the UK's “closest ally.”
Business Secretary Jonathan Reynolds said the UK hoped to strike a trade deal to “mitigate the impact” of the 10% tariffs on British goods announced by Trump.
“Nobody wants a trade war and our intention remains to secure a deal," said Reynolds. "But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
Italy’s conservative Premier Giorgia Meloni described the new 20% tariffs against the European Union as “wrong,” saying they benefit neither side.
“We will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favour of other global players,” Meloni said in a Facebook post.
Brazil's government said it was considering taking the case to the World Trade Organization. And later, in a rare display of unity, Brazil’s Congress unanimously passed a reciprocity bill to allow its government to retaliate against any country or trade bloc that imposes tariffs on Brazilian goods.
Asian countries that are among the biggest exporters to the US pledged to take swift action to support automakers and other businesses likely to be affected.
South Korea's acting leader, Prime Minister Han Duck-soo, told officials to work with business groups to analyse the potential impact of the new 25% tariff to “minimise damage,” the trade ministry said.
China's commerce ministry said Beijing would “resolutely take countermeasures to safeguard its own rights and interests,” without saying exactly what it might do. China has reacted to earlier rounds of higher tariffs by imposing higher duties on US exports of farm products, while limiting exports of strategically important minerals used for high-tech industries such as electric vehicles.
“China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue,” it said.—agencies
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