From the moment Trump was elected US President, Brussels harboured concerns about his pre-election positions. There may have been hope that Donald Trump, once in office, wouldn’t follow through on his promises to impose tariffs on Chinese products. However, this is no longer a matter of expectations but reality, as the new US President is steadily implementing his campaign promises.
On Saturday, Trump announced a 25% tariff on products imported to the US from Canada and Mexico, while increasing existing tariffs on Chinese products by 10%, triggering global concern.
The burden of responsibility now lies with Brussels. European leaders, meeting today at the informal European Council, must demonstrate they have both answers and reflexes to respond to these new developments in the global political landscape. They simultaneously face the challenge of proving they have a role to play in this new international environment.
The question remains how they will respond to these developments. Their initial reaction was merely to express disappointment over the US increase in customs tariffs on Canadian, Mexican and Chinese products, describing the measure as “detrimental to all parties”.
“The EU is absolutely convinced that low tariffs promote growth and economic stability,” but “will respond firmly” if targeted by “unfair” tariffs, the European Commission warned.
However, we don’t know what this “firm” response mentioned in the statement will entail, nor how Brussels will handle the entire issue, which will certainly impact European economies.
The increase in tariffs, particularly on Chinese products, was among the EU’s primary concerns. This comes as the EU sets its key objectives for the next five years, focusing on strengthening Defence and Economy.
“The alliance with the US and transatlantic relations are crucial, but we must be prepared. Just as we’re ready to work with new businesses, we must also be ready to show more responsibility in Europe. And we are ready because we have everything we need. Recent years have shown we can do it,” noted a Brussels diplomatic source from European Parliament President Roberta Metsola’s circle last November during a press delegation from Cyprus to Brussels, immediately following Trump’s election.
It remains for the EU to prove they are indeed ready and can demonstrate their ability to make the European economy stronger and more resilient.
Meanwhile, since Trump has shown his intentions, there’s an even more pressing need to study the potential consequences of an American withdrawal from Ukraine. Is the EU prepared to handle this scenario?
At the time, the same source stated: “We remember Trump from his previous term, so the obvious answer would be that three areas will likely cause problems first, but I think Ukraine is the most worrying. I think it’s a huge security issue for Europe, existential even. And if the Americans withdraw or try to make a deal with Putin without the Ukrainians, Europe will pay the price, because Ukraine’s security is Europe’s security.”
But what will European leaders do in this case? A difficult question without an easy answer…
