The European Commission has said that it will react “firmly and immediately against unjustified barriers to free and fair trade” after US President Donald Trump said his administration would soon announce a 25% tariff on imports from the EU.
“The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies,” a commission spokesperson said in response to a request for comment on Mr Trump’s remarks.
“The EU will always protect European businesses, workers, and consumers from unjustified tariffs,” the spokesperson said in an emailed statement.
Asked at a cabinet meeting whether he has decided on a tariff rate for goods from the European Union, Mr Trump said that tariffs on European Union products would be 25% in general.
“We have made a decision, and we’ll be announcing it very soon, and it’ll be 25%, generally speaking, and that’ll be on cars, and all of the things,” Mr Trump said.
He also signalled that duties on Canada and Mexico will take effect in early April.
Donald Trump’s 25% tariff threat a negative for Ireland
The US President also described the EU – whose creation was encouraged for decades by Washington – as rooted in an attempt to counter the United States.
“Look, let’s be honest, the European Union was formed in order to screw the United States,” Mr Trump said.
In response to that remark, the Commission spokesperson said: “The European Union is the world’s largest free market. And it has been a boon for the United States.”
The spokesperson said that, by creating a large and integrated single market, “the EU has facilitated trade, reduced costs for US exporters, and harmonized standards and regulations across 27 countries”.
“As a result, US investments in Europe are highly profitable,” the spokesperson added.
“Europe stands for dialogue, openness and reciprocity. We’re ready to partner if you play by the rules.
“But we will also protect our consumers and businesses at every turn. They expect no less from us.”
Mr Trump said the tariffs would hit products including cars, adding that the EU has “really taken advantage of us”.
He has threatened “reciprocal tariffs” on US trading partners to counter “unfair and unbalanced” trade.
He has also said he would impose sweeping levies on imports of certain products, such as autos and pharmaceuticals.
Since taking office in January, Mr Trump has announced and paused blanket tariffs on US neighbours Canada and Mexico over illegal immigration and fentanyl smuggling.
Asked about the halt, Mr Trump said he was not stopping the tariffs, adding that he planned for levies to take effect on 2 April.
“The tariffs go on, not all of them, but a lot of them,” he said.
Norway’s Prime Minister Jonas Gahr Store has said the planned imposition of the tariffs would result in a serious trade conflict.
Norway is not a member of the European Union but it closely integrated with the bloc on trade.
Irish Government sources have indicated that Ireland’s position is that tariffs are economically counterproductive for everyone, and drive inflation for consumers everywhere.
They pointed out that the EU-US trading relationship is the biggest in the world, and that Europe believes the trade deficit is on the EU side, not the US side.
They added the EU has been planning for possible eventualities and will work together to assess any potential impacts.
Additional reporting Mícheál Lehane
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