Ursula von der Leyen criticized Trump's tariffs, EU preparing response: Costs will rise

(Patria) - European Commission President Ursula von der Leyen on Thursday sharply condemned US President Donald Trump's decision to impose a 20 percent tariff on EU goods, announcing retaliation and emphasizing that the bloc is "ready to respond".

Trump on Wednesday classified the European Union among a group of 60 countries subject to higher "reciprocal" tariffs, along with China, India, Japan, and Korea, while the rest of the world is subject to 10 percent tariffs. This is the biggest shift towards protectionism in America since the Great Depression of the 1930s.

Von der Leyen warned that Trump's tariffs would have serious consequences for consumers and businesses that have prospered through trade with the United States since World War II. The European Union, the world's largest single market, must also defend itself against deep disruptions in global trade that could arise from Trump's isolation of the United States.

"There seems to be no order in the disorder. There is no clear path through the complexity and chaos being created, as all American trading partners will be affected," she said in a televised address.

The EU executive announced that the bloc would prepare countermeasures against Trump's latest tariff hikes, with a package of 26 billion euros (approximately 50.8 billion KM) in response to the tariffs already imposed on steel and aluminum. At the same time, she promised that Brussels would work to protect the most exposed industries.

"We are already finalizing the first package of countermeasures in response to the steel tariffs, and we are now preparing further countermeasures to protect our interests and our businesses if negotiations fail," von der Leyen said from Samarkand, Uzbekistan, where she attended a summit.

"We will also carefully monitor what indirect effects these tariffs might have. Because we cannot absorb global overcapacity, nor will we accept dumping in our markets," she added, as the bloc prepares for an influx of cheaper export products from China and other countries that will be excluded from the US market.

She warned of the impact Trump's dismantling of the global trade order would have on consumers and businesses.

"Millions of citizens will face higher grocery bills. Medicines will become more expensive, as will transportation. Inflation will rise," she said.

"The cost of doing business with the United States will increase dramatically," she emphasized.

ING Bank on Wednesday lowered its GDP growth forecast for the eurozone to 1 percent for next year from 1.4 percent, anticipating tariffs, and also lowered its forecast for this year.

Von der Leyen, however, refrained from initiating immediate countermeasures on behalf of EU member states, which the Commission represents in trade matters. Her trade negotiator, Maroš Šefčovič, will meet with 27 EU ambassadors on Friday, Politico reports.