Europe Braces for Trade War as US Threatens Tariffs on European Exports

Europe Rejects US Tariffs, Threatens Retaliation

The European Commission has rejected the rationale for new US tariffs on European exports, vowing to protect businesses, workers, and consumers across the bloc. The statement came after US President Donald Trump threatened to impose 25-percent tariffs on all steel and aluminum imports, reigniting fears of a transatlantic trade war.

EU leaders swiftly condemned the proposed tariffs, calling them unlawful and economically harmful. With European leaders signaling their readiness to retaliate, concerns are growing that the looming trade dispute could strain economic ties and disrupt global markets.

France was among the first to respond, warning that the EU would retaliate if the tariffs take effect. Germany is also preparing for action, with Chancellor Olaf Scholz stating that the EU could "act within an hour" if Trump proceeds with tariffs.

Industry leaders are pushing for a firm response, urging the EU to react in a "united, strategic, and swift manner." French President Emmanuel Macron cautioned that tariffs on EU goods would not be in the interests of the United States, pointing out that European savings play a crucial role in financing the U.S. economy.

Economic experts share Macron's concerns, warning that Trump's planned tariffs could push up interest rates worldwide and have ripple effects on global monetary policy.

if the U.S. imposes new trade barriers, the EU stands ready to defend its economic interests with countermeasures.