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EU pledges to hold firm in face of Trump tariff threat

William Denselow in Brussels

04:26

The European Union has promised a firm response if Donald Trump follows through on a threat to impose tariffs on European goods. 

Over the weekend the U.S. President imposed duties on Chinese, Mexican and Canadian goods, warning that levies on European products would also "definitely happen." 

Trade between the U.S. and EU is worth roughly $1.6 trillion per year but Trump claims that the relationship is unfair. Europe exported over $500 billion worth of goods to the U.S. in 2023 but imported around $356 billion. 

The U.S. President says that the bloc is "out of line" but EU officials argue that the relationship is balanced out by the U.S. surplus when it comes to the trade in services. 

Spain's Prime Minister Pedro Sanchez and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas at Monday's EU leaders summit in Brussels. /Yves Herman/Reuters
Spain's Prime Minister Pedro Sanchez and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas at Monday's EU leaders summit in Brussels. /Yves Herman/Reuters

Spain's Prime Minister Pedro Sanchez and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas at Monday's EU leaders summit in Brussels. /Yves Herman/Reuters

In response to Trump's tariff threat, a Commission spokesperson said that the EU will "respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods." 

It was a point reiterated by EU foreign affairs chief Kaja Kallas, who said the bloc is preparing its response. 

"What is clear, there are no winners in trade wars," Kallas declared. "If the United States and the U.S. start the trade war, then the one laughing on the side is China. We are very interlinked, we need America and America needs us as well. The tariffs increase costs, they are not good for the jobs, not good for the customers either."

European leaders gathered on Monday in Brussels for an informal meeting to discuss the issue of security and defense. Addressing the media ahead of the gathering, Polish Prime Minister Donald Tusk said the threat of duties represented a test of EU solidarity.

European officials have previously expressed hopes of averting a trade dispute with the U.S. and have floated the notion of buying more liquefied natural gas to appease Washington. But French President Emmanuel Macron insisted the EU must take a stand if hit with tariffs.

"If our commercial interests are attacked, Europe as a true power, will have to make itself respected and therefore react," Macron said.

U.S. President Donald Trump says tariffs against the EU will happen. /Nathan Howard/Reuters
U.S. President Donald Trump says tariffs against the EU will happen. /Nathan Howard/Reuters

U.S. President Donald Trump says tariffs against the EU will happen. /Nathan Howard/Reuters

Trump has also urged Europe to pay more on defense and has called for fellow members of NATO to boost defense spending to five percent of annual gross domestic product, up from the current two percent benchmark. 

European Council President, Antonio Costa, called Monday's meeting an opportunity to bolster collaboration, financing and partnerships when it comes to the bloc's collective security.

"[Europe] needs to become more resilient, more efficient, more autonomous and a more reliable security and defense actor," Costa said in a letter to EU leaders. 

UK Prime Minister Keir Starmer and NATO Secretary-General Mark Rutte were also invited to the meeting in Brussels. 

Rutte has previously agreed with the U.S. President that defense spending needs to be increased. Ahead of Monday's meeting he called on European NATO allies to ramp up both defense production and spending.  

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