EC: Trump’s proposed ‘reciprocal’ trade policy a step in the wrong direction

The European Commission (EC) said in a statement on February 14 that it views US President Trump’s proposed “reciprocal” trade policy as a step in the wrong direction.

The BBC reported that on February 13, Trump signed a memo that instructed staff to develop custom tariffs for each country, taking into account features such as their existing tariffs, exchange rates, trade balances and other rules.

“The EU remains committed to an open and predictable global trading system that benefits all partners,” the EC said.

The EU maintains some of the lowest tariffs in the world and sees no justification for increased US tariffs on its exports.

“Tariffs are taxes. By imposing tariffs, the US is taxing its own citizens, raising costs for business, stifling growth and fuelling inflation. Tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets.”

World trade has flourished under predictable, transparent rules and low tariffs, the EC said. It said that for decades, the EU has worked with trading partners like the US to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rules-based trading system—commitments that the US is now undermining.

The EC said that the EU thrives as one of the world’s most open economies, with over 70 per cent of imports entering at zero tariff. It said that the EU’s average applied tariff on imported goods remains among the lowest globally. Economic integration and the removal of trade barriers have been fundamental to the European Union’s success, the statement said.

“We believe in trade partnerships that are mutually beneficial and balanced, grounded in transparency and fairness. That is also why the EU has the largest and fastest growing network of trade agreements in the world. The EU has negotiated and concluded over three times as many trade agreements as the US.

“The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies. The EU will always protect European businesses, workers, and consumers from unjustified tariff measures,” the EC said.

(Photo: Sebastien Bertrand)