Madrid, (EFE).- The European Union signaled its readiness to respond to the new 20% tariffs imposed by the United States on European products. However, European Trade Commissioner Maros Sefcovic is set to engage in talks with his US counterparts on Friday in an attempt to de-escalate the situation.
The latest round of tariffs, announced on Wednesday, will affect EU exports worth 390 billion dollars.
The decision has sparked concern among European leaders and industries, who are using Brussels to exhaust diplomatic avenues before considering countermeasures.
According to the World Trade Organization (WTO), these tariffs could shrink global trade by 1%.
EU leaders reactions
European Commission President Ursula von der Leyen affirmed that the EU is prepared to retaliate if necessary.
European Parliament leaders have also voiced for reciprocal action.
Meanwhile, the European Central Bank (ECB) has emphasized the need for caution in monetary policy, given the uncertain outlook for global trade.
French President Emmanuel Macron condemned the tariffs as “brutal” and “unfounded,” warning that they have repercussions for global commerce.
The French government has also hinted at potential retaliatory measures targeting US tech giants.
In Germany, outgoing Economy Minister Robert Habeck has called for a pragmatic approach, urging the EU to seek new trade alliances.
The UK government, meanwhile, has launched consultations with affected industries to assess the impact of potential countermeasures.
Economic impact on Europe
Economic analysts predict the tariffs could shave up to 0.35 percentage points off Austria’s GDP growth in 2025 and lead to a 1.4% drop in exports.
In Switzerland, officials acknowledge the potential for significant economic disruption but remain in talks with US authorities to explore possible solutions.
Industry reactions and concerns
The impact on specific industries has been swift.
The European Automobile Manufacturers’ Association (ACEA) has urged EU leaders to negotiate a solution to safeguard jobs, investment, and economic growth.
Meanwhile, the EU’s largest agricultural lobbying group, Copa-Cogeca, has called for diplomacy before resorting to countermeasures.
The European wine and spirits industry is bracing for losses of up to 1.77 billion dollars annually, with trade associations warning of severe consequences for employment and the economy.
Key wine-producing regions, including La Rioja, Andalusia, the Basque Country, Castilla-La Mancha, Murcia, and Valencia, are calling for wine to be excluded from the tariff dispute.
Financial markets have reacted negatively to the trade escalation.
Major European stock indices tumbled following the US announcement, with losses in London (-1.55%), Paris (-3.31%), Frankfurt (-3.01%), Milan (-3.6%), and Madrid (-1.19%).
The euro surges past 1.11, its highest level since Oct. 2024, reflecting investor concerns over trade instability.
Meanwhile, oil prices have plunged more than 6%, as the tariffs threaten to slow economic growth and reduce global crude demand.
The recent decision by OPEC+ to increase oil production has further pressured prices. EFE
mam/seo/mcd
