VDL: Trump’s tariffs announcement a major blow to world economy
United States President Donald Trump’s announcement of universal tariffs on the whole world, including the European Union, is a major blow to the world economy, European Commission President Ursula von der Leyen said on April 3.
Trump announced a sweeping new set of tariffs on April 2, including 20 per cent for the EU, arguing that they would allow the United States to economically flourish, the BBC reported.
Responding in a statement, Von der Leyen said: “I deeply regret this choice”.
The global economy will massively suffer, uncertainty will spiral and trigger the rise of further protectionism, and the consequences will be dire for millions of people around the globe, Von der Leyen said.
Millions of citizens will face higher grocery bills, medication will cost more as well as transportation, inflation will go up, and this is hurting in particular the most vulnerable citizens, she said.
All businesses – big and small – will suffer from day one, Von der Leyen said.
“From greater uncertainty to the disruption of supply chains to burdensome bureaucracy.”
The cost of doing business with the United States will drastically increase, she said.
“At the same time, we know that the global trading system has serious deficiencies. I agree with President Trump, that others are taking unfair advantage of the current rules,” she said.
“And I am ready to support any efforts to make the global trading system fit for the realities of the global economy. But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it.”
That is why, from the outset, we have always been ready to negotiate with the US, to remove any remaining barriers to Transatlantic trade, Von der Leyen said.
“At the same time, we are prepared to respond. We are already finalising a first package of countermeasures in response to tariffs on steel,” she said.
“And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail.”
It is not too late to address concerns through negotiations, Von der Leyen said: “This is why our Trade Commissioner, Maros Šefčovič,is permanently engaged with his US counterparts”.
(Photo: EC Audiovisual Service)
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