Ursula von der Leyen recently stated, “We will always protect our own interests – however and whenever that is needed,” in response to Donald Trump’s warning of impending tariffs against the European Union. Trump’s comments have escalated tensions as he indicated that these tariffs would be implemented “pretty soon.”
In a bid to avert a potential trade war, the European Union is prepared to enter into “tough negotiations” with Trump, as von der Leyen addressed EU Ambassadors in Brussels on Tuesday. This announcement followed last-minute agreements made by Canada and Mexico with the White House to temporarily sidestep hefty 25% tariffs.
Trump’s earlier remarks suggested that he views tariffs more as a foreign policy instrument to secure concessions from nations, including allies, rather than as tools for optimizing trade. He emphasized that tariffs against the EU “definitely will happen,” raising alarms among officials in Brussels.
In her speech, von der Leyen expressed the EU’s readiness for serious discussions: “We will find solutions where possible, address grievances, and establish a foundation for a stronger partnership. Our approach will be open and pragmatic.” She emphasized the need to protect European interests, stating, “This will always be the European way.”
The agreements with Canada and Mexico involve commitments such as enhanced border security and measures against the fentanyl trade, arms trafficking, and organized crime. In return, Trump has postponed the planned 25% tariffs for an initial 30 days, while Canada and Mexico agreed to hold off on their planned countermeasures. In stark contrast, the 10% tariffs on China have already come into effect, prompting retaliatory actions from Beijing.
As international markets adapt to this ongoing trade dynamic, attention is now shifting toward the EU, which may soon find itself facing similar tariffs. Trump has been vocal about his grievances, claiming that “The European Union has abused the United States for years.”
In 2023, the EU noted a significant trade surplus of €155.8 billion with the US, primarily driven by exports of pharmaceutical products and vehicles. Interestingly, when it comes to services, the EU experiences a deficit of €104 billion with the US, which Trump has largely overlooked in his discussions about trade issues.
Critical Stakes in EU-US Relations
If Trump follows through on his tariff threats, the responsibility will fall on the European Commission, which has the authority to set trade policies. During her address, von der Leyen reiterated the Commission’s intention to work closely with the new administration to seek common ground.
However, she did not specify potential concessions that could soothe Trump’s concerns, instead highlighting collaboration in areas of mutual interest, including emerging technologies and critical supply chains. For instance, discussions have taken place regarding increased imports of American liquefied natural gas (LNG) to assist the EU in moving away from reliance on Russian energy sources.
Von der Leyen pointed out that the EU and the US collectively account for nearly 30% of global trade and over 40% of the world’s GDP. Furthermore, European firms in the US employ about 3.5 million Americans, with another million American jobs linked directly to trade with Europe. “There is a lot at stake for both sides,” she insisted, emphasizing the importance of maintaining this partnership.
Additionally, she urged EU ambassadors to be “bold and agile” in forging partnerships with other nations, even those that do not share the EU’s political values but align on specific interests. She mentioned the potential for expanding trade and investment ties with China while addressing existing friction points.
In her conclusion, von der Leyen called for a shift away from post-WWII thinking, advocating for an adaptation of EU foreign policy to navigate the current era characterized by intense global competition. “Europe must engage with the world as it is, making decisions based on a clear understanding of our interests,” she stated.
This perspective seeks to deliver stability, security, and prosperity, both for Europeans and for partners across the globe.
Photo credit & article inspired by: Euronews
