Europe prepares countermeasures to Trump’s tariffs, calling them a ‘major blow to the world economy’

(CNN) — The European Union is preparing countermeasures to US President Donald Trump’s announcement of 20% tariffs on imports from the bloc, which it called a “major blow to the world economy.”

The EU is a major US trading partner. Last year, it was the largest single market for US goods exports, ahead of America’s neighbors Canada and Mexico, based on figures from the United States Census Bureau.

“President Trump’s announcement of universal tariffs on the whole world including the European Union is a major blow to the world economy. I deeply regret this choice,” Ursula von der Leyen, head of the European Union’s executive arm, said on Thursday, adding the tariffs will be felt “immediately.”

Trump on Wednesday launched a historic global trade war, announcing sweeping global tariffs on dozens of nations, from Nicaragua to Cambodia. The tariffs come on top of previously imposed taxes on imports of steel, aluminum and cars.

“Let’s be clear-eyed about the immense consequences. The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism,” von der Leyen said in Samarkand, Uzbekistan, where she is attending the EU-Central Asia Summit.

“All businesses, big and small, will suffer from day 1, from big uncertainty to the disruption of supply chains, to burdensome bureaucracy. The costs of doing business with the United States will drastically increase,” she said.

While the European Union would prefer to work with the US to reduce trade barriers, von der Leyen said “Europe is ready to respond.”

“We are already finalizing the first package of countermeasures in response to tariffs on steel, and we are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,” she added.

Last month, the EU responded to Trump’s steel and aluminum tariffs by unveiling countermeasures on up to 26 billion euros ($28 billion) worth of exports of American goods, including tariffs on boats, bourbon and motorbikes.

Both Europe and the US have a lot at stake in the escalating trade dispute. In 2024, America was the biggest buyer of European goods, with imports ranging from pharmaceutical products and cars to alcoholic drinks and telecommunications equipment, according to official EU data. The EU, meanwhile, was America’s biggest source of goods imports last year, the US figures showed.

“In the past 80 years trade between the European Union and the United States has created millions of jobs,” von der Leyen said on Thursday. “Consumers across the Atlantic have benefitted from reduced prices. Businesses have benefitted from huge opportunities, leading to unprecedented growth and prosperity.”

Still, she said the global trading system has “serious deficiencies.”

“I agree with President Trump that others are taking unfair advantage of the current rules and I am ready to support any efforts to make the global trading system fit for the realities of the global economy,” von der Leyen said. “Reaching for tariffs as your first and last tool will not fix it.”

She stressed that the European Union is ready to negotiate with the US, but Europe must stand up for itself.

“I know that many of you feel let down by our oldest ally. Yes, we must brace for the impact that this will inevitably have. Europe has everything it needs to make it through the storm. We are in this together. If you take on one of us, you take on all of us.”

The-CNN-Wire
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