BRUSSELS: The EU vowed Friday to respond “firmly and immediately” to trade barriers after US President Donald Trump unveiled tariffs that could hit both allies and competitors.
The European Commission said Trump’s plans were “a step in the wrong direction” that heightened economic uncertainty and disrupted the efficiency of global markets.
“The EU will react firmly and immediately against unjustified barriers to free and fair trade,“ the commission, which runs trade policy for the bloc’s 27 nations, said in a statement.
Trump said Thursday he had decided to impose reciprocal duties, in a dramatic escalation of an international trade war he has unleashed since taking office in January.
Speaking in the Oval Office, the Republican said that US allies were often “worse than our enemies” on trade, and took particular aim at the EU, calling it “absolutely brutal” in its commercial relations with Washington.
The levies would be tailored to each US trading partner and consider the tariffs they impose on American goods, alongside taxes seen as “discriminatory,“ such as value-added taxes (VATs), a White House official said on condition of anonymity.
“The EU maintains some of the lowest tariffs in the world and sees no justification for increased US tariffs on its exports,“ the European Commission said, vowing to protect European firms and consumers.
“Tariffs are taxes. By imposing tariffs, the US is taxing its own citizens, raising costs for business, stifling growth and fuelling inflation.”
Since taking office, Trump has announced a broad range of tariffs targeting some of America’s biggest trading partners, arguing that they would help tackle unfair practices -- and in some cases using the threats to influence policy.
