Leaders of the European Union (EU) have raised alarms regarding the potential for a trade war following U.S. President Donald Trump's threats to impose new tariffs on the bloc of 27 countries. European Commission President Kaja Kallas stated that such measures would adversely affect consumers on both sides of the Atlantic, emphasizing that "there are no winners in trade wars."
The EU has pledged a "firm response" should these tariffs be implemented, which they deem "arbitrary and unjust." Trump reiterated his intention to impose a 25% tariff on imports from Mexico and Canada (with some exceptions) and a 10% tariff on Chinese goods, warning that the EU would be next on the list. He justified his actions by citing a $300 billion trade deficit with Europe.
In response, countries like France and Germany have lost a balanced approach and are considering retaliatory trade measures that could impact key products for the U.S. The European Central Bank has warned that these tariffs could lead to increased inflation and disrupt global economic stability.
While some EU nations prefer to avoid direct confrontation, others advocate for more stringent measures. The bloc now faces the challenge of maintaining unity and safeguarding its economy amid escalating tensions with Washington.