The European Union‘s top officials have issued a sharp rebuke following USA President Donald Trump’s announcement of sweeping new tariffs on imported goods, including a 20% duty on all EU imports. With trade tensions escalating, Brussels is signaling a strategic pivot toward forging alternative international trade alliances.
Von der Leyen: “Terrible consequences for millions of people”
European Commission President Ursula von der Leyen reacted swiftly on Thursday morning, warning that Trump’s decision will have “terrible consequences for millions of people around the world.”
She described the tariffs as deeply regrettable and pledged that the EU was preparing a firm response. “We are getting ready with additional packages of measures to protect our interests,” said von der Leyen, adding that Brussels still hopes to keep the door open for negotiations. She confirmed the EU will seek a strategic dialogue with key industries such as steel and automotive manufacturing.
António Costa: time to accelerate trade with other global partners
Meanwhile, António Costa, President of the European Council, emphasized that the USA tariffs reinforce the need for the EU to diversify its trade relationships. In a statement on X, Costa said:
“Now is the time to ratify agreements with Mercosur and Mexico, and to move forward decisively in negotiations with India and other key partners.”
The Mercosur agreement—still awaiting final ratification—would establish a free trade area between the EU and Argentina, Brazil, Paraguay, and Uruguay. Talks with India have also intensified in recent years, as Europe aims to reduce dependence on transatlantic trade.
EU prepares first wave of countermeasures
Von der Leyen confirmed that a first package of countermeasures is already in the works, aiming to shield EU industries from the fallout. While details remain undisclosed, officials are expected to target politically sensitive sectors in the US economy—mirroring the EU’s approach during previous trade disputes.
The European Commission will also consult closely with industry representatives to assess the impact and calibrate the response.
Risks of inflation and supply chain disruption
The tariffs are likely to raise prices on both sides of the Atlantic, increasing costs for manufacturers and consumers. Key sectors such as automotive, aerospace, agriculture, and machinery are expected to be particularly affected.
Economic analysts warn that the escalating trade conflict could trigger supply chain disruptions, market volatility, and inflationary pressure—especially in a global economy still recovering from the aftershocks of the pandemic and energy crisis.
