Brussels – The European Union’s executive branch clarified that the bloc has no intention to undermine the United States, as suggested by U.S. President Donald Trump. On the contrary, the EU emphasized that it is the world’s largest free market, which has brought substantial economic benefits to American companies operating within and alongside the continent.
The EU firmly stated its opposition to the proposed 25% blanket tariff on all EU exports to the U.S., a threat made by Trump in the midst of escalating tensions. The EU expressed its commitment to resist such tariffs, which are part of the recent harsh rhetoric directed at a longstanding ally and economic collaborator.
Reacting to Trump’s comments alleging the EU’s purpose was to exploit the U.S., the EU rebuffed such claims. Trump asserted that the EU was designed to disadvantage America, a narrative he vowed to change during his presidency. Specifically, he mentioned imposing tariffs on various goods, including automobiles.
The moment the tariffs would be announced, the EU has said it would trigger tough countermeasures, on iconic U.S. industries like bourbon, jeans and motorcycles.
“The EU will react firmly and immediately against unjustified barriers to free and fair trade,” European Commission trade spokesman Olof Gill said in a statement. “We will also protect our consumers and businesses at every turn. They expect no less from us.”
Trump said in comments late Wednesday that the United States stood ready.
“We are the pot of gold. We’re the one that everybody wants. And they can retaliate. But it cannot be a successful retaliation, because we just go cold turkey. We don’t buy any more. And if that happens, we win.”
Gill also countered Trump’s caustic comments on the inception of the EU and its development as an economic powerhouse.
“The European Union is the world’s largest free market. And it has been a boon for the United States,” he said, adding that the EU has “facilitated trade, reduced costs for U.S. exporters, and harmonized standards and regulations,” which makes it easier for U.S. exporters.
The EU estimates that the trade volume between both sides stands at about $1.5 trillion, representing around 30% of global trade. Trump has complained about a trade deficit, but while the bloc has a substantial export surplus in goods, the EU says that is partly offset by the U.S. surplus in the trade of services.
The EU says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. Trade in services was worth 688 billion euros ($710 billion) with a trade deficit of 104 billion euros ($107 billion) for the EU.
The figures are so big that it remained essential to avoid a trade war, the EU has said.
“We should work together to preserve these opportunities for our people and businesses. Not against each other,” Gill said. “Europe stands for dialogue, openness and reciprocity. We’re ready to partner if you play by the rules.”
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