Trump’s fresh tariff threats set stage for trade clash with EU
Donald Trump has turned his attention to the European Union. He has vowed to impose tariffs as he accuses the bloc of unfair trade practices, a move that could escalate tensions between Washington and Brussels.
Trump has reignited his trade war rhetoric by announcing plans to impose tariffs on the EU, claiming it is the “only way” for the US to achieve fair treatment in trade. Speaking at the White House on Tuesday, Trump said the EU does not “take our cars or farm products” and insisted that new tariffs would level the playing field.
“The European Union is very, very bad to us,” he said, reiterating his long-standing criticism of the bloc’s trade policies.
Trade tensions
Trump’s comments come just days after taking office for his second term and underscore his focus on trade deficits and protectionist policies. He further claimed that the US runs a trade deficit of $350 billion with the EU, though official US figures put the deficit at around $131 billion in 2023.
"The European Union is very, very bad to us"
He argued that the EU benefits disproportionately from access to the American market and singled out Germany, France, Ireland and Italy as key contributors to the imbalance.
The EU has been bracing for renewed tariff threats since Trump’s re-election campaign, but it remains to be seen how it will react to them. The Commission has considered increasing purchases of US liquefied natural gas as a goodwill gesture, a strategy that may help defuse tensions.
However, the bloc is also readying countermeasures, including tariffs on politically sensitive US exports such as bourbon, motorcycles and agricultural products - a move that would mimic the EU’s response to Trump’s imposition of duties on European steel and aluminium in 2018.
Weakened standings
On Wednesday, the leaders of the EU's two biggest economies - German chancellor Olaf Scholz and French president Emmanuel Macron - are set to meet in a bid to chart the bloc’s course in the face of a new Trump era.
Despite their weakened political standing - Scholz is expected to be ousted in elections in February, while Macron saw his influence wane after a disastrous snap election last year - the political heavyweights will seek to project strength and unity.
“We will defend free trade as the basis of our prosperity together with other partners,” Scholz said at the World Economic Forum in Davos on Tuesday. “Europe is committed to free, fair global trade and we are not alone in this.”
Donald Trump at EU headquarters in 2017 © PHOTO THIERRY CHARLIER / AFP
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