‘All options are on the table’ in US tariffs response – EU chief
European Commission President Ursula von der Leyen has warned “all options are on the table” in response to US President Donald Trump’s tariffs threats, saying while the EU does not want an economic conflict it has the “power to push back”.
Speaking at the European Parliament’s plenary session in Strasbourg, France, in a debate where one MEP labelled the US tariffs plan as “fear trade”, Ms Von der Leyen said the EU’s single market is Europe’s “safe harbour” in a world facing a “stormy economy”.
Directly addressing the US tariffs threat, the European Commission President said “Europe did not start” the economic stand-off and believes “it is wrong”.
While stressing the EU is “open to negotiations” with the US, she stressed the bloc will “approach from a position of strength” given the size and economic power of the EU.
Ms Von der Leyen said the EU will do “everything to protect” its economy, and has the “power to push back”, saying “together we will always stand up for our Europe”.
While acknowledging Mr Trump’s claims that some individuals have “taken advantage” in the past, the European Commission president warned that tariffs “will just fuel inflation” and risk costing jobs by creating “a bureaucratic monster”.
She said the EU will “double down on the single market” and will respond to the US tariffs announcements with a “calibrated response”.
Ms Von der Leyen continued by saying “we think this confrontation is in no one’s interests” and that while “Europe did not start this confrontation” and “we do not necessarily want to retaliate”, the EU has the power to do so and “we will use it”.
Noting the value of an open single market to the EU for decades, and its benefits to the US and the wider world, Ms Von der Leyen said this must be protected.
She said the EU also already has trade deals with 76 countries, saying the single market is the EU’s “safe harbour” in a world facing a “stormy economy”, before adding: “Love, live, Europe.”
During the same discussion, German MEP and president of the European People’s Party, Manfred Weber, said “the next Trump challenge is coming on Wednesday, Trump isn’t about free trade, he’s about fear trade”.
Mr Weber quoted Mr Trump’s “liberation day” label for his tariffs announcements tomorrow, saying instead that it should be known as “resentment day” from the US towards the EU.
Mr Weber said this is because the reality is that both the EU and US are near equal when it comes to the strength of their economies, a situation he said Mr Trump is trying to end.
Quoting former US president Ronald Reagan, Mr Weber added: “The freer the flow of world trade, the stronger the tides for economic progress and peace among nations.”
The quote is from Mr Reagan’s US radio address on international trade on 6 August 1983, in which Mr Reagan also said “I’ve seen in my lifetime what happens when leaders forget these timeless principles. They seek to protect industries and jobs, but they end up doing the opposite”.
“One economic lesson of the 1930s is protectionism increases international tensions. We bought less from our trading partners, but then they bought less from us. Economic growth dried up. World trade contracted by over 60%, and we had the Great Depression,” said Mr Reagan.
During the same European Parliament debate, Fianna Fáil MEP for the South constituency and Renew Group member, Billy Kelleher, said while he welcomes Ms Von der Leyen’s view that “the EU has the strength to negotate and the power to push back”, he said “we must have dialogue”.
Mr Kelleher said “we must ensure” that any EU response to the US tariffs threat is done “strategically and without emotion”, as “some countries are specifically dependent” on areas that could be impacted by any tariff conflict.
Referencing Ireland, he said while we “clearly want to maintain” a united EU response, he said this response “must ensure” the individual needs of EU member states.
Article Source – ‘All options are on the table’ in US tariffs response – EU chief – RTE
