Everything we do best as a territory is now going to be 20% more expensive for US consumers, thanks to president Donald Trump’s flagrant and unnecessary taxes.
The president’s tariff set up already has economists baffled, with many warning since the first mention of them that they will cause international turmoil, especially for US citizens who ironically are the people Trump is allegedly trying to benefit.
Europe exports €18bn of food and drink to the US, so it’s a hefty sum to whack a 20% charge on, a cost that will inevitably be passed on to the US consumer, but volume fluctuations will be felt by EU producers.
That’s €18bn of wine, beer, spirits, cheese, chocolate, olive oil, fruit and a host of other produce the bloc is known for making so beautifully. And all things Americans want and love to eat and drink.
How will the EC combat the tariffs?
So, what’s the European Commission doing about it and will country leaders work as one group or lone wolves to counter the threat?
European Commission president Ursula von der Leyen has already warned of “dire consequences” for millions of consumers around the world.
The cost of food and drink will increase for consumers across the world, she said. The EU will be paying a higher 20% tax, to be implemented on April 9, whereas the UK will pay the baseline of 10%, which will activate from April 5.
Also read → US tariffs and what they mean in 90s
Political leaders from across the bloc have also swiftly reacted to the announcement, with many calling for unity and to leverage the “full force of the Union’s scale” – it is the world’s largest single market, after all.
But all agreed the need to avoid a trade war was paramount.
“Europe’s strength is our strength”, said outgoing German economy minister Robert Habeck. A “negotiated solution” was the best outcome, he added.
Italian prime minister Giorgia Meloni said her country would do all it could to work towards an agreement with the States. “As always, we will act in the interest of Italy and its economy, also by discussing with European partners,” she said.
What do other leaders say about tariffs?
Sweden echoed the negative sentiment of the tariffs, but prime minister Ulf Kristersson said the country would work with the EU to “reverse these developments”.
Ireland’s prime minister Micheál Martin said it was his priority to protect Irish jobs and the economy and his government would work with companies in navigating the period ahead. Though he didn’t mention the EU.
Finland’s prime minister Petteri Orpo reiterated there are no winners in a trade war and evasion was needed. “Businesses, consumers and economic growth suffer,” he said.
“The EU is ready to respond and negotiate. We support this effort. Finland is prepared as part of the Union.”
So, can the bloc pull together to fight the impact of the tariffs? There are lots of good noises coming from some of the loudest leaders. However, not all of them cite the EU as a defence, at least not in their initial responses.
