Trump’s tariffs a ‘major blow’ to global economy, European Commission President says

European Commission President Ursula von der Leyen labelled US President Donald Trump’s 20% tariff on the EU a “major blow” to the global economy.

She said its consequences “will be dire for millions of people."

Groceries, transport and medicines will cost more, she said, “and this is hurting, in particular, the most vulnerable citizens.”

Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the US but also was prepared to respond with countermeasures.

The EU is “preparing for further countermeasure” to protect its interest, Ursula von der Leyen said after Donald Trump announced 20% levies on European goods, urging the US to “move from confrontation to negotiation”.

“We are already finalising a first package of countermeasures in response to tariffs on steel. And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail," the Commission president said on Thursday from Samarkand, Uzbekistan, where she will attend the first-ever EU-Central Asia summit.

“We will also be watching closely what indirect effects these tariffs could have, because we cannot absorb global overcapacity nor will we accept dumping on our market,” she added.

Brussels already has two lists of US products that could be hit with tariffs, EU officials previously said, including one that contains goods that have been subject to suspended tariffs since 2018. Further measures may be necessary, the officials said, that could potentially target services.

In her short address on Thursday, von der Leyen said she agrees with Trump “that others are taking advantage of the current rules” and that she is “ready to support any efforts to make the global trading system fit for the realities of the global economy.”

“But I also want to be clear: Reaching for tariffs as your first and last tool will not fix it,” she said.